Tether-issued USDT (usdt<\/a>) stablecoin broke past a new all-time-high market cap of over $83 billion as it continues its stablecoin market dominance. <\/p>\n The new ATH market cap for the USDT stablecoin comes in a year when other stablecoin issuers are struggling to remain afloat due to regulatory ire. The same was pointed out by cryptocurrency exchange Binance’s CEO Changpang Zhao aka CZ.<\/p>\n CZ in a quote tweet drew attention towards USD<\/a>, a Binance stablecoin issued by Paxos. The Binance CEO said that \u201cBUSD was a fully regulated stablecoin that was ‘capped’ by NYDFS at a $23 billion and currently sits at a $5 billion market cap and since then USDT has seen tremendous growth.\u201d<\/p>\n BUSD, a fully regulated stablecoin, was “capped” (no new minting) by NYDFS at $23b. Now at $5b market cap.<\/p>\n Since then, USDT has seen tremendous growth. https:\/\/t.co\/KqBkDK71WS<\/a><\/p>\n \u2014 CZ Binance (@cz_binance) June 1, 2023<\/a><\/p><\/blockquote>\n In February earlier this year, the New York Department of Financial Services (NYDFS) ordered Paxos to stop any new issuance<\/a> of BUSD citing violations of security laws. <\/p>\n At a time when USDT has reached its ATH market cap, its competitors such as Circle-issued USD Coin (usdc<\/a>) or Binance’s BUSD are struggling to maintain their market dominance. USDC the second largest stablecoin’s market cap stands at $28.8 billion with a difference of over $50 billion. For context, at one point UDC’s market dominance was nearing that of USDT and its market cap reached an ATH of $55.8 billion in June 2022.<\/p>\n While the prolonged bear market in 2022 took its toll on both the stablecoins which saw a decline in market cap after the June 2022 high. However, USDT has managed to bounce back with a higher market dominance while USDC’s market cap has been cut in nearly half.<\/p>\n Related: <\/em><\/strong>Are stablecoins securities? Well, it’s not that simple, say lawyers.<\/em><\/strong><\/a><\/p>\n The prominent reason for the decline in the market share of other stablecoins can be attributed to regulatory scrutiny shown by United States regulators added to the banking crisis. After a ban on new minting of BUSD alleging security violations, the BUSD market cap dropped rapidly as users started to convert their BUSD for other stablecoins. <\/p>\n Similarly for USDC, the major crisis came in the form of the collapse of the Silicon Valley Bank where the stablecoin issuer held about $3.3 billion in reserves<\/a>, This led to market panic and a subsequent depegging from the US dollar. Although USDC re-pegged the next day it took a significant toll on its market cap as many converted their USDC to other stablecoins in fear of a total crash. <\/p>\n Magazine: <\/em><\/strong>‘Moral responsibility’ \u2014 Can blockchain really improve trust in AI?<\/em><\/strong><\/a><\/p>\n <\/div>\n\n
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