Tether Takes 75% Stablecoin Market Share, USDT Hits Record Exchange Balance

Tether has increased its market share by 20 points over the past two years, bolstered by a $118 billion USDT supply and $400 million in monthly revenue.

Tether Takes ¾ of the Stablecoin Pie

According to data released by Token Terminal on September 16, Tether’s USDT controls more than 75% of the stablecoin market, up from 55% in 2022.

This growth reflects the growing demand for USDT as a trusted intermediary between traditional currencies and digital assets.

With a circulating supply of $118 billion, USDT has gained widespread recognition in the crypto market, thanks to the strong financial performance of its parent company Tether. In the past month alone, Tether generated $400 million in revenue, cementing its position as the leading stablecoin issuer.

Tether’s bloated market share also underscores USDT’s dominance in the digital asset space, where investors often rely on it to hedge against market volatility.

Strong financials

Tether generates revenue not only from issuing stablecoins, but also from investments in assets such as Bitcoin and gold. In Q1/2024, the company made $4.5 billion in profit, with investments in Bitcoin and gold alone contributing $3.52 billion, while operating profit was just $1 billion.

In addition, the company is focusing on regulatory compliance, with plans to double its headcount by mid-2025, specifically hiring more compliance experts. Last week, Tether appointed former PayPal Director of Regulatory Relations Jesse Spiro as its new head of government affairs.

USDT Exchange Record

Another sign of Tether's dominance is that USDT balances on exchanges hit a record $20.339 billion on August 13. Historical data shows that USDT balances on CEXs surge during both bull and bear markets.

It can be seen that investors tend to hold USDT to manage risks or wait for trading opportunities. During a recession, they often convert volatile assets to stablecoins like USDT to avoid losses. Conversely, when the market shows signs of recovery, they will accumulate USDT, always ready to invest.