Tether leaves the competition behind

The USDT tokens of Tether now again account for more than two-thirds of all stablecoins in circulation after experiencing significant growth in 2023 compared to competing providers. The number of USDT in circulation exceeded 95 billion. This reported The Block with reference to DefiLlama.

Tether managed to increase its share of the global stablecoin supply from 50 percent to 71 percent. This puts USDT far ahead of its competitors, with Circle's USDC tokens in second place with a 19.1% market share and Maker Protocol's DAI tokens in third place with a market share of only 3.75%.

There was recently a change in management at Tether. Longtime CTO Paolo Ardoino took over from former CEO Jean-Louis van der Velde in December. In recent months, Ardoino has worked to curry favor with law enforcement and regulatory agencies. Among other things, he has frozen the USDT portfolios of foreign investors who have been put on notice by the U.S. Office of Foreign Asset Contrals (OFAC).

Stablecoins such as USDT bridge the gap between traditional capital markets and blockchain-based markets for digital assets. They provide market participants with liquidity for trading and borrowing, and therefore the growing stablecoin market can be seen as a positive sign for the health of the crypto rally.