{"id":48214,"date":"2023-06-01T12:04:50","date_gmt":"2023-06-01T12:04:50","guid":{"rendered":"https:\/\/lydian.io\/?p=48214"},"modified":"2023-06-01T12:04:51","modified_gmt":"2023-06-01T12:04:51","slug":"tether-usdt-market-cap-breaks-ath-binance-ceo-hints-at-regulatory-caps","status":"publish","type":"post","link":"https:\/\/lydian.io\/tether-usdt-market-cap-breaks-ath-binance-ceo-hints-at-regulatory-caps\/","title":{"rendered":"Tether USDT market cap breaks ATH, Binance CEO hints at regulatory caps","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>2 Minute, 20 Second <\/div>\n\n <\/div>

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With its continued market dominance, the Tether (USDT) stablecoin has hit a brand new all-time excessive (ATH) with a market cap of over $83 billion. <\/p>\n

The brand new ATH market cap for USDT is available in a yr when different stablecoin issuers are struggling to remain afloat as a consequence of regulatory points. The identical was highlighted by cryptocurrency change Binance CEO Changpeng \u201cCZ\u201d Zhao.<\/p>\n

\"\"USDT market cap chart. Supply: CoinMarketCap<\/p>\n

In a tweet, CZ drew consideration to Binance USD (BUSD), the stablecoin issued by Paxos underneath the Binance model. Binance CEO mentioned that BUSD, a totally regulated stablecoin, was \u201ccapped\u201d by the New York Division of Monetary Companies (NYDFS) to $23 billion and presently has a market cap of $5 billion, and that USDT has been since has skilled super progress.<\/p>\n

BUSD, a totally regulated stablecoin, has been \u201ccapped\u201d (no re-minting) by NYDFS to $23 billion. Now with a market cap of $5 billion.<\/p>\n

Since then, USDT has skilled super progress. https:\/\/t.co\/KqBkDK71WS<\/a><\/p>\n

\u2014 CZ Binance (@cz_binance) June 1, 2023<\/a><\/p>\n

In February, the NYDFS ordered Paxos to halt any new issuance of BUSD, citing violations of safety legal guidelines. <\/p>\n

At a time when USDT has achieved an ATH market cap, its rivals, similar to Circle-issued USD Coin (USDC) and BUSD, are struggling to retain their market share. The market cap of the second largest stablecoin, USDC, is $28.8 billion, a distinction of over $50 billion. For comparability, at one level USDC's market dominance approached that of USDT, with its market cap hitting a brand new excessive of $55.8 billion in June 2022.<\/p>\n

USDC Market Cap Chart All Time. Supply: Coinmarketcap<\/p>\n

Whereas the continued bear market took its toll on each stablecoins in 2022, the market cap declined after the June 2022 excessive. Nevertheless, USDT was capable of bounce again with stronger market dominance, whereas USDC's market cap was virtually halved.<\/p>\n

Associated: <\/strong>Are stablecoins securities? Properly, it isn't that easy, say attorneys<\/strong><\/p>\n

The principle cause for the decline available in the market share of different stablecoins will be attributed to regulatory scrutiny by US regulators, which is amplifying the banking disaster. Following a ban on BUSD re-minting over alleged safety breaches, BUSD's market cap plummeted as customers started to transform their BUSD into different stablecoins. <\/p>\n

For USDC, too, the large disaster got here within the type of the collapse of Silicon Valley Financial institution, the place the stablecoin issuer held about $3.3 billion in reserves. This led to market panic and subsequent decoupling from the US greenback. Though the USDC was repegged to the forex the subsequent day, it took a major toll on its market cap as many, fearing a complete crash, transformed their USDC into different stablecoins. <\/p>\n

Journal: <\/strong>\u201cEthical Accountability\u201d \u2013 Can Blockchain Actually Enhance Belief in AI?<\/strong><\/p>\n