USDT soars to $115 billion market cap as Tether sets new record

Tether’s USDT has reached another significant milestone in market capital, surpassing the $115 billion mark. This achievement is proof that stablecoins gain massive traction in the market, especially during periods of high volatility where users rush to safer crypto assets.

USDT has become an indispensable part of the digital asset ecosystem, having widespread use for trading and as an outlet for investors in times of market uncertainty.

Source: IntoTheBlock

Resilience in the cryptocurrency market

Cryptocurrencies Cryptocurrencies have shown excellent market resilience lately, with some of the biggest being Bitcoin and Ethereum. Currently, Bitcoin accounts for around 54.4% of the market, while Ethereum has around 17.8%.

The combined market for all these digital assets is estimated to be worth $2.11 trillion, with USDT ranking third among digital assets. This kind of increase highlights the growing relevance of Tether, as well as the confidence traders and investors have in the cryptocurrency. stablecoin.

Paolo Ardoino, CEO of Tether, was proud to have reached this huge milestone. He was quoted as saying that USDT has moved up from where it started. Just to measure how much this asset class has skyrocketed, it was able to generate a net profit of $5.2 billion during the first half, which it achieved with significantly less manpower than the big exchanges like Coinbase and Binance have. All thanks to a well-thought-out strategic investment portfolio, as well as adapting to the rapidly changing norms in digital finance.

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—Paolo Ardoino 🤖🍐 (@paoloardoino) August 8, 2024

Expansion and compliance

Building on recent success, Tether has outlined the expansion of its workforce up to 200 employees by mid-2025. The increase in staff is intended to ensure better compliance with regulatory provisions and improve operational efficiency.

According to Ardoino, the staff increase would be done with a reduced structure, although staff would be added in the areas of finance and regulatory compliance. Some advanced tools are also being created to track illicit activities with USDT to demonstrate that it is transparent and compliant with regulations.

Tether has been criticized for the fact that its stablecoin could be used for illicit activities. The company decided to move forward voluntarily and froze 50 million USDT that were directly related to transactions that were flagged as suspicious.

In an effort to achieve greater transparency and security, Tether has also established a partnership with a blockchain data protection company, Chainalysis. The goal is to develop secondary market protocols that make surveillance possible. This effort will further strengthen Tether’s war against all forms of fraud and fraudsters, ensuring a secure platform.

1.3B $ USDT Has been transferred from #TetherTreasure To the exchanges since the market crash on August 5th! image.twitter.com/BYtMqgVRyZ

— Lookonchain (@lookonchain) August 9, 2024

USDT: Innovation and Investments

Looking ahead, Tether is firmly committed to market growth and innovation. This includes investing over $2 billion in different startups over the past two years in areas such as artificial intelligence and telecommunications.

Meanwhile, amid a broader cryptocurrency market boom, blockchain specialist Lookonchain noted that $1.3 billion worth of USDT was transferred to centralized exchanges including Kraken, OKX and Coinbase.

Ardoino hinted that Tether’s auto-investment is likely to continue this aggressive trend to push emerging technologies and new trends in the digital landscape. This proactive approach not only cements Tether’s position as a leader in the stablecoin market, but also secures its position as a major player in the rest of the cryptocurrency ecosystem.

Featured image from Pexels, chart from TradingView