Tether Stablecoin Defies Economic Contraction with a Whopping 22% Surge in 2023!

"Tether Stablecoin Circulation Surges by Over 22% Since January 2023, Approaching Record Highs"

Tether stablecoins have seen a significant increase in circulation since January 2023, growing from 66 billion to 80.9 billion, marking a growth of more than 22% this year alone. This growth is approaching the high of $83 billion in stablecoins in circulation that Tether saw almost a year ago, in May 2022.

The stablecoin market has recently contracted, currently hovering around $131.94 billion. The decrease in the stablecoin market can be attributed to several dollar-pegged coins that have reduced their token supplies. In the last month, USD Coin (USDC) has decreased its supply by 12.6%, while Binance USD (BUSD) has seen an 18.9% reduction in supply. Additionally, MakerDAO’s DAI has experienced a 9.8% decrease in supply, and Tron’s USDD supply has decreased by 1.3% in the past month.

Tether, on the other hand, has increased its supply by more than 22% this year, rising from 66 billion tethers in January to the current 80.93 billion. Roughly 6.3% of USDT’s growth was recorded during the past 30 days alone, according to statistics. Tether’s market capitalization is the third-largest in the cryptocurrency economy, accounting for 6.213% of the $1.2 trillion in value. Moreover, Tether accounts for $29 billion of the current $52.2 billion in 24-hour global trades as of Monday, April 17, 2023.

Tether trades account for 55.56% of every trade settled during the last day in the crypto economy, with a 24-hour trade volume of around $29 billion. Tether’s market capitalization was around $80 billion on April 17 after briefly reaching $81 billion. The last time Tether’s market valuation was this high was in May 2022, when USDT’s market valuation exceeded $83 billion. The lowest drop in valuation after that point in time was $65 billion in November 2022.

According to data from Coincarp.com, the ERC20 version of Tether built on top of Ethereum has 4,266,498 unique holders, and 37.3% of it is controlled by the top 100 wallets. The Tether minted on Arbitrum has 276,383 unique holders, and 10 wallets hold 49.15%. The Tether minted on Solana, however, is a different story, with 480,388 holders, and the top ten wallets only hold 2.16%. Tether is also issued on several other blockchains including Polygon, Tron, and others, but the majority is stored on the Ethereum chain.

The future of Tether and stablecoins in general is uncertain, given the recent market contraction. It remains to be seen how Tether will fare in the coming months and whether it will continue to maintain its position as the third-largest cryptocurrency by market capitalization. Only time will tell how the market will develop and how Tether will adapt to changing market conditions.

Martin Reid

Martin Reid

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