The overall market value of USDT has surpassed $81.4 billion, according to data from CoinMarketCap. This figure peaked at over $83 billion in May of last year, when the Terra event caused investors to widely sell cryptocurrencies. In the second quarter of last year, the crisis resulted in an almost 20% decline in Tether’s holdings.
When TerraUSD exploded, USDT fell under $1. It did so once more in November when FTX failed. Regulators throughout the world have focused on stablecoin issuers as a result of earlier concerns about the integrity of the assets used by Tether for that reserve.
Tether has benefited this year from both the financial instability that has damaged rivals like Circle’s USD Coin and the market upswing that has sent Bitcoin prices up by roughly 70%. Tether’s headquarters are in the British Virgin Islands, and more merchants are apparently moving their operations out of the US as a result of the country’s changing legal environment. In the interim, Circle’s USDC assets, which are managed from Boston, have decreased by about 30% this year.
Tether also seems to benefit from the current pattern of banking institutions rejecting customers who use cryptocurrencies. Stablecoins like Tether are one of the only workable cryptocurrency investment choices as a result.
State authorities and the US Securities and Exchange Commission have stepped up enforcement measures at the same time. BUSD, the stablecoin with the Binance brand, was no longer being issued by Paxos Trust Co. due to complaints from New York and the SEC. BUSD’s market valuation has decreased by roughly 60% since the start of the year, according to CoinMarketCap.
The USDT issuer’s advantage is that, thanks to its regularly updated reporting, its reserves have not yet undergone an independent audit. A few years ago, it came to an arrangement with New York about the mixing up of funds and lying about reserves; the outcome revealed that the corporation made no admissions of guilt.
