Tether USDT poised to hit $100 billion market cap following a surge in global usage

Tether’s USDT stablecoin is on the verge of a significant milestone, with its market capitalization nearing $100 billion.

CryptoSlate’s data show that the digital asset currently boasts a market capitalization of $99.5 billion, representing a 9% growth on the year-to-date metric.

This surge follows the recent minting of 1 billion USDT by the Tether Treasury. On Mar. 3, Whale Alert reported this significant activity, with the Tether Treasury creating an additional 1 billion USDT, valued at approximately $999 million.

In response, Tether CEO Paolo Ardoino clarified that the newly minted USDT is intended to replenish the Ethereum network. He explained that this freshly minted USDT will serve as inventory for forthcoming issuance requests and chain swaps.

“PSA: 1B USDt inventory replenish on Ethereum Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps,” Ardoino explained.

Why is Tether’s market cap rising?

Tether’s rising market capitalization reflects the heightened demand for the stablecoin among investors looking to enter the crypto market.

Following the approval of multiple Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission, institutional and retail interest in the crypto sphere has surged significantly, considering BTC’s price has risen to previous highs and the potential for more gains.

Moreover, Tether is witnessing a notable uptick in demand from developing nations such as Nigeria, where citizens are turning to it as a safeguard against the volatility of their national currencies, which are often prone to frequent devaluation.

Additionally, Tether’s increasing market capitalization can be attributed to its integration with the Tron network. According to DeFillama data, over $50 billion USDT are circulated on Tron, surpassing the $40.2 billion on Ethereum.

These numbers suggest market makers and large investors favor the Justin Sun-linked network due to its lower transaction fees.

The post Tether USDT poised to hit $100 billion market cap following a surge in global usage appeared first on CryptoSlate.