Tether, the dollar-pegged stablecoin, is on the cusp of reaching $100 billion in total assets, marking a remarkable ascent over the past six years. As of the latest transparency report, Tether’s total assets stand at $95.2 billion, with $92 billion represented by the USDT stablecoin.
- Tether’s current total assets: $95.2 billion, with $92 billion in USDT.
- Gabor Gurbacs, VanEck strategy advisor, reaffirms support for Tether’s growth.
- Tether’s market cap has surged by 6,560% since the beginning of 2018.
Growth and Support:
Gabor Gurbacs, a strategic advisor at VanEck, reflects on Tether’s journey, emphasizing the underestimation of exponential innovations by investors. Tether, once under $100 million in market cap in 2017, has experienced unprecedented growth, turning into a significant player in the crypto market.
Tether’s Strategy:
Tether’s strategy involves profiting from high yields on US Treasury bills, with 85.7% of its reserves in “Cash and Cash Equivalents and Other Short-Term Deposits.” This includes 76.4% in US Treasury bills, 11% in overnight reverse repurchase agreements, and 11% in money market funds. Notably, Tether allocates a portion of its profits to acquiring Bitcoin.
Stablecoin Ecosystem Outlook:
Stablecoins currently comprise 7.2% of the total crypto market capitalization, amounting to $132 billion. Tether dominates this space with nearly 70% market share, showcasing a growth of almost 40% in the past 12 months. In contrast, major rivals like USDC and DAI have experienced declines in their supplies.
Conclusion: Tether’s journey to nearly $100 billion in total assets is a testament to the exponential growth potential of innovative financial instruments. As stablecoins continue to evolve, Tether’s strategic approach and market dominance position it as a pivotal player in the crypto landscape. The stablecoin’s unique trajectory underscores the dynamic nature of the crypto market and the significance of strategic foresight.
Julia