Tether Generated a Net Profit of Nearly $1.5 Billion in Q1, 2023
USDT is one of the top stablecoin projects in the world. The on-chain metrics for the crypto project suggest that it has gained around a 25 percent increase in value on YTD or Year-to-Date. At present, the banking sector in the USA is undergoing a rough patch.
However, this time has cemented the value of stablecoin USDT a viable store of value for many investors. The first quarter earnings of the Tether project have remained positive with noteworthy revenue of $1.5 billion for 2023.
On the other hand, Tether has issued the earnings report for the first quarter of the ongoing year. It is worth noting that as per the official statistics issued by Tether, the earnings of the crypto entity reached an ATH of $2.44 billion in the first quarter of last year.
Meanwhile, the revenue for the last quarter of 2022 was closed at $960 million. The consolidated total assets for the first quarter were valued at around $81.8 billion. On the other hand, the total liabilities for the same duration were around $79.4 billion.
It is worth mentioning that Tether used various cryptocurrencies as its backup reserve such as Bitcoin.
Tether is a stablecoin that is backed by several assets and cash equivalents for stability. The project makes use of Bitcoin, physical gold, and corporate bonds allocation among other assets as backup reserves. Bitcoin holdings of Tether are around $1.5 billion on the other hand the precious metal holdings are around $3.3 billion.
On the other hand, 85% of Tether’s earnings are present in liquid assets such as cash, short-term deposits, and cash equivalents. Gold and Bitcoin percentages in Tether reserves are 4 and 2 percent simultaneously.
Tether has increased its dependency on bank deposits to maintain more liquidity. It has drifted away from the Repo market leveraging that was done to mitigate risks. Tether CTO, Paolo Ardoino has issued a public statement about the Q1 report recently.
He said that they are excited about the brilliant success of Tether in the first quarter. Additionally, they have an optimistic outlook for Q2 progress and have ensured transparency on the matter. They have decided to bring new holdings types that can assure full disclosure for the stakeholders.
The current financial environment is reflected in the price evaluation and market cap changes of Polkadot blockchain native currency. The blockchain is an interoperability network that enables cross-chain communication and transactions.
During the last 7 days, DOT value dropped by 8% while the monthly returns for the cryptocurrency remained at 16.55%, as per CoinMarketCap projections. During the last 24 hours, DOT has reached a unit price of $5.36 citing a 2% appreciation.
The current market cap of DOT stands at $6.34 billion making it the 11th largest crypto on the global scoreboard.
Polkadot is known for parachain features that are used for cross-chain data shares. At any given time the network can support up to 100 parachains. The parachain destinations are determined by governance voting and auctions. Kusama is one noteworthy parachain that Polkadot parachain supports.
Furthermore, Polkadot is also the biggest development network in the crypto sector. Since 2018, development activity on the blockchain has grown 16 times as per Messari’s Q1 report on 2023.