Tether's USDt Surpasses $150 Billion Market Cap, Driven by 36% Supply Growth
1min read Tether’s USDt (USDT) has achieved a significant milestone by surpassing a $150 billion market capitalization for the first time on May 12. This growth reflects the increasing adoption of stablecoins in the global market. Over the past year, USDt’s circulating supply has expanded by over 36%, with a notable acceleration in growth following the election of US President Donald Trump in November.
Ask Aime: Tether's USDt hits $150 billion cap. Is it a buy?
With its current supply, Tether dominates the global stablecoin market, accounting for 61% of the total market share. This positions USDt as a critical player in providing liquidity and funding for cryptocurrency trading. Following Tether, Circle’s USDC accounts for nearly 25% of the stablecoin market, highlighting the competitive landscape in the stablecoin sector.
The surge in USDt’s market cap is part of a broader trend toward digital fiat currencies. Recent data indicates that the number of active stablecoin wallets has increased by more than 50% over the past year, rising from 19.6 million to 30 million. This trend underscores the growing acceptance and usage of stablecoins in the financial ecosystem.
Despite its global presence, Tether’s usage is restricted in the United States, a region that is increasingly supportive of pro-crypto legislation. In response to this regulatory environment, Tether is planning to launch a new dollar-backed stablecoin in the US later this year. This move aims to capitalize on the growing demand for stablecoins within the region.
Tether’s CEO, Paolo Ardoino, highlighted the distinction between a domestic stablecoin and an international one, emphasizing the unique regulatory and market dynamics in the US. Tether is also ramping up its lobbying efforts in Washington as lawmakers consider several stablecoin-related bills, including the STABLE Act introduced by House Financial Services Committee Chair French Hill and Digital Assets Subcommittee Chair Bryan Steil.
The STABLE Act has faced criticism from former Commodity Futures Trading Commission Chair Timothy Massad, who argued that the bill poses significant risks due to weak state standards and an inadequate review process. Massad’s concerns center on the lack of ongoing federal supervision of state issuers, which could undermine the effectiveness of the proposed legislation.
