The market dominance of Tether (USDT) has grown substantially since mid-February due to two events.
Firstly, New York regulators ordered Paxos to stop minting new Binance USD (BUSD). Secondly, Circle revealed that $3.3 billion in its stablecoin reserves were initially tied up at collapsed Silicon Valley Bank. The USDC reserves have since been transferred to other financial institutions.
Tether’s Market Dominance Hits 61.77%
The two events thus caused an exodus of users from BUSD and USDC over to USDT.
The market dominance of Tether has since hit a local peak of 61.77%, as seen in the screenshot below courtesy of CoinGecko.com.
Tether’s Market Cap Inches Closer to Pre-LUNA Crash Levels
In addition, Tether’s market cap has been steadily growing from a local low of $64.61 billion set in mid-November and after the collapse of FTX to current levels of $79.710 billion. This is a 23.37% growth in roughly five months.
The market cap chart below, courtesy of Coinmarketcap.com, further shows that Tether’s market cap is inching closer to pre-LUNA crash levels of $83.24 billion.
Therefore, a loose conclusion can be made that Tether’s market cap will breach its May 2022 peak level, continue higher, and possibly hit $100 billion by the end of the year.
