Stablecoin player Tether has recently announced its vast market capitalization stand at a whopping $86.1 billion, persisting as a powerful force within the market, despite growing competition and questionable regulatory scenarios. The company’s reserve report outlines total assets totaling $86.1 billion versus liabilities that amount to $82.8 billion, including consumer assets held in USDT across various networks. These figures further reinforce the company’s stability, as its reserves surpass 100%.
The reported $3.2 billion liquidity cushion creates a surplus that is welcomed by the community. This $3.29 billion surplus signifies shareholder capital held across over 15 networks. An example of this can be found on the Solana network which has an impressive pre-authorization value of $1.57 billion, followed by Ethereum and Tron coming in at $617 million and $353 million respectively.
That’s not to say Tether hasn’t faced its fair share of scepticism. Past scrutiny from regulatory authorities stemmed from allegations of false financial statements, which led to an unfortunate $41 million fine being levied by the Commodity Futures Trading Commission in October 2021. The subsequent anxiety amongst users was compounded further by the collapse of the Terra Network due to its algorithm-backed stablecoin in April 2022.
However, there is still evidence of significant silver linings for Tether. No regulatory criticisms have been lobbied against their previous transparency reports, a fact that goes some way in explaining the continued growth in popularity amongst investors in the face of competition.
Tether‘s signature stablecoin, USDT, notably stands alone as the only asset boasting of surplus reserves. This dominance over its competition transcends through numerous quarterly reports. In Q2 alone, a 30% quarter-to-quarter increase was reported, raising reserves above the $3.2 billion mark. The company even achieved an all-time high in June, with its market cap soaring past $83 billion, leaving rivals struggling to break surface.
USDT’s closest competitor, USD Circle, reaches a market cap of only $28.8 billion, trailing behind by a significant $50 billion. Equally staggering is the recent slump of USDC recording a market cap drop to 55.8 billion in June 2022. Meanwhile, the rising star Binance USD (BUSD) reaches a humble mark of $5 billion, yet is subjected to a New York Department of Financial Services imposed regulatory cap of $23 billion. This makes clear the power of USDT, which only continues to go from strength to strength.
Source: Cryptonews
