Tether Eating All Other Stablecoins as Total Assets Approaches $100B 

Tether’s total assets are not far away from $100 billion following a monumental rise over the past six years. 

The current figure for the firm’s total assets is $95.2 billion, according to its transparency report. Of that amount, $92 billion is in the dollar-pegged stablecoin, USDT. 

Tether Keeps Growing

On Jan. 3, Tether and VanEck strategy advisor Gabor Gurbacs reaffirmed his support for the firm, adding, “Like the Bitcoin ETF, many thought I was crazy.”

USDT market cap was under $100 million in the spring of 2017 when I flagged to Wall Street that Tether has the potential to reach $100 Billion.”

Since the beginning of 2018, just six years ago, Tether’s market capitalization has grown a whopping 6,560%. 

The investment expert offered some lessons he has learned from his continued support of Tether, which appears to be morphing into a CBDC

“Investors generally underestimate exponential innovations,” he said before adding that small, capable teams that are stubborn can bring to life exponential innovations.

“Listen to the guy with the ambitious project/prediction that sounds crazy at the time.”

On Jan. 3, Tether CTO Paolo Ardoino simply stated that the firm had a good fourth quarter. 

Tether has been profiting from high yields on US Treasury bills and using a portion of their profits to buy Bitcoin.

According to its reserves report, 85.7% of Tether reserves are “Cash and Cash Equivalents and Other Short-Term Deposits.” 

Of this amount, 76.4% are US Treasury bills, 11% are overnight reverse repurchase agreements, and 11% are money market funds. 

Stablecoin Ecosystem Outlook 

Stablecoins currently represent 7.2% of the total crypto market capitalization with $132 billion. This percentage has fallen from the 16-17% of the market that stablecoins represented in 2022. 

Tether commands the lion’s share of this total, with a market dominance of almost 70%. Over the past 12 months, its supply has grown by almost 40% while its major rivals have declined. 

Circle’s USDC supply has shrunk by 44% over the past year to its lowest level since June 2021. There are just $24.8 billion in USDC circulating, giving it a market share of almost 19%. 

MakerDAO’s DAI is the third largest stablecoin with $5.3 billion in circulation, and TrueUSD (TUSD) is fourth with $2.3 billion.

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