Tether Stablecoin Records 22% Growth Despite Market Contraction

Bullion Bite

Tether stablecoin has continued to see impressive growth in 2023, despite a contraction in the dollar-pegged token economy. According to recent statistics, the number of tether stablecoins in circulation has increased from 66 billion in January to 80.9 billion in April, representing growth of over 22%. This growth is approaching the high of $83 billion that was recorded in May 2022.

In contrast, the stablecoin market has recently experienced a decrease in token supplies. Several dollar-pegged coins, such as USDC, BUSD, DAI, and USDD, have reduced their supplies, resulting in a contraction of the market, which currently hovers around $131.94 billion. However, Tether (USDT) has increased its supply by more than 22% this year alone.

Tether currently has the third-largest market capitalization in the cryptocurrency economy, accounting for 6.213% of the total value of $1.2 trillion. Additionally, tether is responsible for $29 billion of the current $52.2 billion in 24-hour global trades. Its impressive growth has contributed to the stablecoin's market capitalization, which reached around $80 billion in April, after briefly exceeding $81 billion.

A view of tether’s (USDT) market capitalization growth since 2015. The current number of USDT (80.93B) is nearing the supply’s all-time high recorded last May ($83B). 

Tether's success can be attributed to its popularity and widespread adoption among crypto traders. With a 24-hour trade volume of around $29 billion, tether trades account for more than half of every trade settled during the last day in the crypto economy. The ERC20 version of tether built on top of Ethereum has 4,266,498 unique holders, while the tether minted on Arbitrum has 276,383 unique holders. Tether is also issued on several other blockchains, including Polygon and Tron, but the majority is stored on the Ethereum chain.

Despite the contraction of the dollar-pegged token economy, Tether stablecoin has continued to experience impressive growth in 2023. Its widespread adoption among crypto traders has contributed significantly to its success, with tether accounting for more than half of every trade settled in the crypto economy in the last 24 hours.

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