- Now capitalization is $82.9 billion
- The all-time high was $83.2 billion
Capitalization of Tether approaching to record levels. Currently, Tether’s market capitalization has reached $82.9 billion, with an all-time high of $83.2 billion, which was last seen in May last year. Analysts at Kaiko found that the supply of Tether increased without a corresponding increase in trading volumes.
They wrote that users predominantly use Tether to trade on centralized exchanges, taking up 50% of the market compared to other stablecoin pairs. On DEX exchanges, USDT holds about 20% of the market.
The Kaiko report also describes the factors behind capitalization growth. Among them: the cessation of the issuance of the BUSD stablecoin on Binance and the USDC depping in March. However, these reasons are not enough to explain the more than $15 billion growth in Tether’s market capitalization since the beginning of 2023.
The main factor in the growth of capitalization was the growth of USDT on Tron. The supply of stablecoins on Tron remains above Ethereum. So far, the total value locked in DeFi apps on Tron is $5.72 billion. The three apps JustLend, JustStables and SUN account for over 99% of TVL.
Kaiko analysts also found that exchanges such as Binance and OKX hold significant USDT balances on Tron, indicating that market makers and whales favor this network for its low fees.