Tether USDT market cap breaks ATH, Binance CEO points at regulatory caps
Tether-issued USDT (USDT) stablecoin broke past a new all-time-high market cap of over $83 billion as it continues its stablecoin market dominance.
The new ATH market cap for the USDT stablecoin comes in a year when other stablecoin issuers are struggling to remain afloat due to regulatory ire. The same was pointed out by cryptocurrency exchange Binance’s CEO Changpang Zhao aka CZ.
CZ in a quote tweet drew attention towards BUSD, a Binance stablecoin issued by Paxos. The Binance CEO said that “BUSD was a fully regulated stablecoin that was ‘capped’ by NYDFS at a $23 billion and currently sits at a $5 billion market cap and since then USDT has seen tremendous growth.”
BUSD, a fully regulated stablecoin, was "capped" (no new minting) by NYDFS at $23b. Now at $5b market cap.Since then, USDT has seen tremendous growth. https://t.co/KqBkDK71WS
In February earlier this year, the New York Department of Financial Services (NYDFS) ordered Paxos to stop any new issuance of BUSD citing violations of security laws.
At a time when USDT has reached its ATH market cap, its competitors such as Circle-issued USD Coin (USDC) or Binance’s BUSD are struggling to maintain their market dominance. USDC the second largest stablecoin’s market cap stands at $28.8 billion with a difference of over $50 billion. For context, at one point UDC's market dominance was nearing that of USDT and its market cap reached an ATH of $55.8 billion in June 2022.
While the prolonged bear market in 2022 took its toll on both the stablecoins which saw a decline in market cap after the June 2022 high. However, USDT has managed to bounce back with a higher market dominance while USDC’s market cap has been cut in nearly half.
Related: Are stablecoins securities? Well,
Read more on cointelegraph.com
