Tether (USDT), the world’s largest stablecoin, has seen its market capitalization surpass $83 billion. This marks a significant recovery from the $20 billion it lost in the wake of the TerraUSD (UST) collapse in May 2022.
Paolo Ardoino, the CTO of Tether, attributed the recovery to the stablecoin’s “proven resilience” and “unwavering commitment to industry-leading transparency practices.” He also noted that Tether’s “ability to weather market volatility” has solidified its reputation as a “trustworthy entity.”
During the turbulent times that shook the cryptocurrency market last year, Tether and other major stablecoins witnessed a significant decline in their market capitalization as investors became increasingly apprehensive and began withdrawing their investments.
While Tether managed to recover the market value it had lost in the previous year, other stablecoins did not experience the same level of success.
For example, USD Coin (USDC), the second-largest stablecoin, currently boasts a market capitalization of approximately $29 billion, significantly lower than its peak of over $56 billion, according to data from CoinGecko.
Researchers at Kaiko reveal that Tether is utilized in over 50% of all transactions conducted on centralized exchanges, underscoring its dominance and widespread adoption in the crypto trading sphere.
The recovery of Tether’s market capitalization is a positive sign for the cryptocurrency market as a whole. It suggests that investors are regaining confidence in the stability of stablecoins, which are seen as a safe haven for investors during times of market volatility.
