During the last year ending this November 10, the market capitalization of the USDT stablecoin rises by more than 42%. In this way, the token minted by Tether is consolidated as the largest of its type, with a market capitalization that reaches $123.28 billion.
According to data from the CoinMarketCap portal, the stablecoin had $86.79 billion by this same date in 2023. This dizzying growth is supported by the confidence of investors in the token despite the constant FUD promoted by some of its detractors.
The market dominance of this stablecoin is overwhelming, considering that the stablecoin sector as a whole has a valuation of $184 billion. The latter is equivalent to an impressive 66.85% market dominance. To get an idea of the dimensions of USDT’s superiority, it is enough to make a comparison with the second most important stablecoin, Circle’s USDC.
Even if USDT’s market capitalization were frozen at last year’s November numbers, it would still double that of USDC today. Circle’s stablecoin has a capitalization of $37 billion, according to the same data portal.
USDT capitalization will continue to grow in the coming months
Generally speaking, USDT is the third largest digital currency in the world, after Bitcoin and Ethereum. In terms of trading volume, it is the undisputed champion, given that this token averages practically all existing Cryptocurrency pairs.
Over the past few years, the stablecoin sector has seen a notable rise in competition. Firms like PayPal already have their own stablecoins that represent the United States dollar in a 1 to 1 ratio. Historically, the big doubts regarding USDT are related to the dollar backing that protects the relationship with the US currency .
However, the firm assures that there are no mysteries and that anyone can audit its reserves, which coincide perfectly with its currency. Another accusation against Tether is the permissibility of use of its token by governments sanctioned by the US. Likewise, the company claims that this activity is practically non-existent.
A unique aspect of USDT is that the vast majority of its circulation is concentrated in the Tron and Ethereum networks. Of the $123 billion, $61.79 billion is in the first and $57.93 billion is in the second. Ton, Avalanche and Solana each own between $1 billion and $2 billion. The rest circulates among other networks.
Year-on-year growth of USDT market capitalization amounts to 42.5%. Source: CoinMarketCap
Other stablecoins that are growing by leaps and bounds
With a capitalization that rises without pause, USDT consolidates itself as the absolute champion of the stablecoin sector. However, other tokens come with an important advance. For example, the aforementioned Circle USDC is experiencing notable growth.
Thus, in the same annual period that ends on November 10, the capitalization of this token grew by 53.23%. Although it grew more than USDT in percentage terms, in magnitude it is a small part compared to the capitalization of its rival. Meanwhile, PayPal coin (PYUSD) grew 109.33% year-on-year. Likewise, this rapid rise does not pose a threat to USDT at all.
Circle’s USDC, the second largest after USDT, has a market share of 20.11%. PYUSD, which is ranked 6th in the stablecoin ranking, occupies a market share of just 0.29%.
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