Tether (USDT), the largest stablecoin by market value, has experienced significant growth in 2023, with its market capitalization increasing by at least $20 billion so far this year. Data from the blockchain data provider Whale Alert reveals that Tether has minted 22.75 billion USDT in 2023, issuing at least 4 billion USDT in the past four weeks.
Starting the year with a market cap of approximately $66 billion, Tether USDT has steadily gained momentum, surpassing a market value of $80 billion in April 2023. On November 14, the USDT market cap briefly reached $87 billion, according to data from CoinGecko.
This ongoing growth of Tether USDT can be attributed to two key reasons, according to a spokesperson for Tether. Firstly, there is a growing interest in Bitcoin from institutional investors, driven by the excitement around the possibility of a Bitcoin exchange-traded fund (ETF) being approved. Additionally, Tether’s record-breaking growth has been fueled by growing demand in emerging markets. The USDT stablecoin has been increasingly establishing itself as the de-facto digital dollar for all emerging markets and developing countries.
In fact, Tether has cited public information from the Brazilian government, indicating that USDT accounts for 80% of all crypto transactions in Brazil, and this pattern is similar in many other countries.
While Tether has seen significant growth, other major stablecoins like Circle’s USD Coin (USDC) have failed to gain much momentum in 2023. After peaking at $55 billion in June 2022, USDC market capitalization has gradually dropped and continued to decline in 2023. Since January 2023, USDC has lost $20 billion in market value, or about 45%, with its market cap currently standing at $24 billion, according to CoinGecko.
Tether’s rapid growth and widespread adoption in emerging markets underscore its position as a leading stablecoin in the cryptocurrency space. As institutional interest in Bitcoin continues to increase and the demand for digital dollars grows in emerging economies, Tether’s market capitalization and influence are expected to continue expanding in the foreseeable future.