USDT Dominance Is the Key to Stablecoin Stability, Here's a Fact

Bittime - USDT Dominance is the key to stablecoin stability. So, this article will discuss several facts related to this. Keep reading the review in this article, OK!

USDT has proven itself to be a safe haven for crypto investors. USDT Dominance is not just a number, but also a reflection of market confidence in stability in a world known for its volatility. 

Tether USDT Ruler of the Stablecoin Market

Imagine a coin whose value is always stable, tied to the US dollar, but can move freely in the digital world. That's USDT, and its dominance has now reached impressive levels. 

In the past two years, USDT's market share jumped from 55% to 75%, accounting for three-quarters of the entire stablecoin market. This is no small feat, considering the fierce competition in the crypto world.

Token Terminal, a leading on-chain data platform, reported on September 16 that USDT supply had reached $118 billion (around IDR 1,805.4 trillion). This figure not only shows the level of market confidence in USDT, but also emphasizes its role as the main bridge between the fiat and crypto worlds.

Read also: Tether Invests $102 Million in Agriculture Giant

Tether: The Money Machine Behind USDT

Sumber: Cointelegraph

USDT Dominance not without reason. Tether, the company behind USDT, has proven itself to be an efficient money-making machine. 

In the last 30 days alone, Tether managed to generate revenue of around $400 million (Rp. 6.12 trillion). This is not an overnight achievement, but rather the result of years of consistent growth.

Even more impressive, in the first quarter of 2024, Tether recorded a net profit of more than $4.5 billion (Rp. 68.85 trillion). Interestingly, the majority of these profits - amounting to $3.52 billion (Rp. 53.86 trillion) - came from financial gains in Bitcoin and gold. 

This shows Tether's smart diversification strategy, not just relying on stablecoin operations alone.

USDT Highest Record on the Exchange

Sumber: Cointelegraph

USDT balances on crypto exchanges reached a new record high on August 13, touching $20.339 billion (Rp. 311.19 trillion). This is a strong signal that investors are preparing to plunge their funds into crypto assets.

Interestingly, the increase in USDT balances on exchanges has occurred in both bearish and bullish market conditions. In bearish situations, USDT accumulation often signals that traders are converting volatile crypto assets into stablecoins in search of safety. 

Conversely, in a bull market, USDT buildup could be an indication that traders are gathering ammunition to buy crypto when prices fall.

Read also: Tether Plans to Develop Dirham-Pegged Stablecoin

Tether Prepares for the Future

USDT Dominance not without challenges. Tether recognizes that with great power comes great responsibility. Therefore, the company plans to double its headcount to 200 people by mid-2025, with a particular focus on expanding its compliance team.

This move was strengthened by the appointment of Jesse Spiro, PayPal's former head of regulatory relations, as the new head of government affairs on September 13. This shows Tether's commitment to maintaining compliance and good relations with regulators, an important step considering USDT's crucial role in the crypto ecosystem.

Conclusion

USDT Dominance in the stablecoin market is not just a statistical number. This is a reflection of the market's confidence in stability and reliability amidst crypto volatility. 

With a 75% market share and consistent growth, USDT has proven itself to be the liquidity backbone in the crypto ecosystem.

However, with great power comes equal responsibility. The challenge ahead for Tether will be to maintain transparency, regulatory compliance, and innovation to continue to meet evolving market needs. 

If successful, USDT will not only maintain its dominance, but will also play a key role in shaping the future of digital finance.

This is a review of USDT Dominance from Bittime. Keep following the latest articles here to find out the most updated news from the crypto world!

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You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

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