Tether Dominates Stablecoin Market with 75% Share

Tether has reaffirmed its position as the leader of the stablecoin market with a 75% share and generating $400M in revenue in 30 days.

Tether Generates $400 Million in Monthly Revenue

Over the past two years, Tether’s market share has surged by over 20%, showcasing its rapid adoption in the crypto space. Token Terminal data showed that Tether’s USDT supply stands at $118 billion.

Since stablecoins serve as a crucial link between traditional finance and cryptocurrencies, this growth reflects the increasing demand for digital assets. Tether generated around $400 million in revenue in the past month alone.

This financial success builds on the company’s strong performance in the first quarter of 2024, when it recorded over $4.5 billion in profit. Notably, most of this profit ($3.52 billion) came from the firm’s investments in Bitcoin and gold.

In comparison, its total operating costs was $1 billion. This indicates that Tether’s revenue model extends beyond mere stablecoin issuance and includes investments in volatile assets.

The USDT Stablecoin Hits Record Highs on Crypto Exchanges

Last month, Tether’s USDT balance on exchanges reached a record high of $20.339 billion. This milestone shows that traders are holding more USDT on exchanges, which they can use in crypto investments easily.

Investors often convert cryptocurrencies to stablecoins like USDT for safety during uncertain markets. Conversely, in bullish markets, they hold stablecoins to buy assets when prices drop.

The USDT issuer’s growing reserves on exchanges signal that it remains a preferred choice for traders, regardless of market conditions. The company has also made significant strides in its operations.

Recently, Tether appointed Jesse Spiro, PayPal’s former head of regulatory relations, as its new head of government affairs. This appointment signals the firm’s efforts to strengthen its regulatory compliance and navigate the evolving landscape of crypto regulations successfully.

The USDT issuer aims to double its workforce to 200 employees by mid-2025, with a strong focus on expanding its compliance team, further underscoring its commitment to maintaining a robust regulatory framework. This surge in market share and operational success positions Tether as a major player in the crypto market.

As the main bridge for investors moving between fiat currencies and cryptocurrencies, Tether’s growth has implications for the broader crypto economy. With a 75% market share, Tether’s influence on the stablecoin sector is more significant than ever, cementing its role as a crucial component of the cryptocurrency ecosystem.

TRON DAO and Tether Freeze 12M USDT Stablecoin in Crime Fight

Meanwhile, TRON DAO has taken decisive action to prevent the misuse of the USDT stablecoin on its blockchain. In partnership with Tether, its newly formed T3 Financial Crime Unit (T3 FCU) has frozen over 12M USDT tied to illicit activities.

This swift move emphasizes TRON DAO’s commitment to enhancing security within the crypto space. The T3 FCU was introduced to fight financial crime related to USDT on the TRON blockchain.

TRON DAO, Tether, and blockchain analytics firm TRM Labs executed this joint effort. By forming this task force and freezing funds linked to suspicious activities, TRON DAO aims to address concerns over the illicit use of cryptocurrencies and strengthen trust in the industry.

USDT is the largest stablecoin, with nearly half of its $118 billion supply on the TRON blockchain. TRON DAO’s collaboration with Tether indicates a focused effort to ensure that the stablecoin remains a secure and reliable asset.

Circle Faces Criticism

The move comes at a time when stablecoins and their issuers are under increased scrutiny for their role in the crypto ecosystem. Recently, Circle, the issuer of USDC, faced criticism for its delayed action in blocking a wallet linked to the North Korea-backed Lazarus Group.

Blockchain investigator ZachXBT accused Circle of being slow to act, allowing funds tied to money laundering to move through its platform. These actions reflect the growing importance of proactive measures in the crypto industry to prevent financial crimes.

Tether’s involvement in the task force is significant as the issuer of USDT. It plays a crucial role in maintaining the integrity of stablecoins on various blockchains, including TRON.