Tether’s USDt Market Cap Surges Past $150 Billion, Fueling US Expansion Plans
Tether’s USDt (USDT) has achieved a significant milestone, exceeding a $150 billion market capitalization for the first time on May 12th. This remarkable growth reflects the increasing adoption of stablecoins within the cryptocurrency market.
Over the past year, USDt’s circulating supply has expanded by over 36%, with a notable surge in November. This expansion positions Tether as a dominant force, commanding 61% of the global stablecoin market share according to CoinMarketCap. USDC, from Circle, follows with approximately 25% market share.
USDt market cap growth. Source: CoinMarketCap
The substantial growth of stablecoins is undeniable, with data from Dune and Artemis indicating a more than 50% increase in active stablecoin wallets over the past year, rising from 19.6 million to 30 million. This trend underscores the rising demand for digital fiat currencies and Tether’s crucial role in providing liquidity for cryptocurrency trading.
Related: $1 Trillion Stablecoin Supply Could Drive Next Crypto Rally
Tether’s US Expansion Strategy
Despite its global dominance, Tether’s presence in the US, a key market for cryptocurrency innovation, has been limited. To capitalize on the growing pro-crypto legislative environment, Tether is actively planning to launch a new dollar-backed stablecoin within the US later this year.
Tether’s CEO, Paolo Ardoino, highlighted the distinction between an international and a domestic stablecoin, emphasizing the company’s strategic approach to navigating the US regulatory landscape. This initiative is accompanied by increased lobbying efforts in Washington, as lawmakers consider significant stablecoin-related bills such as the STABLE Act.
However, the STABLE Act has faced criticism from figures like former CFTC Chair Timothy Massad, who expressed concerns about insufficient federal oversight and the potential for weak state standards. Massad’s concerns raise questions about the regulatory challenges Tether may encounter in its US expansion.
Related: US Crypto Bills Compared: STABLE Act vs. GENIUS Act