Tether recovers $20 billion lost in 2022 following TerraUSD crash

Tether, the largest stablecoin, has reached a stunning milestone by surpassing a staggering $83.2 billion in market capitalization. This means the stablecoin has successfully restored the $20 billion in market value that it lost following the collapse of the TerraUSD stablecoin last year.

This new USDT market cap comes at a time when other stablecoin issuers are encountering substantial problems and regulatory barriers, putting constraints on their activities and viability.

Tether, the company behind the platform tether.to, said on June 1 that it has eclipsed its previous market cap high of $83.2 billion achieved in May 2022 in a tweet. Tether’s stablecoin has emerged as a key participant in the cryptocurrency market since its inception in October 2014, outperforming all competitor offers combined in terms of trading volume.

Binance CEO, Changpeng Zhao replied to Tether’s announcement by highlighting Binance’s USD (BUSD), a stablecoin issued by Paxos and backed by Binance. CZ underlined in his tweet that BUSD is a fully regulated stablecoin, subject to a $23 billion cap established by the New York Department of Financial Services (NYDFS). The market capitalization of BUSD is at $5 billion. Zhao also emphasized Tether’s (USDT) extraordinary rise since the beginning of BUSD.

Read Also: Where does Africa stand as global blockchain gaming could be worth $300 billion by 2030?

Tether’s devotion to transparency has brought it thus far

Chief Technical Officer of Tether, Paolo Ardoino said the company’s recent numbers demonstrate that people want access to financial freedom, and when given that access, they will make use of it, 

“Tether tokens offer a safe harbor for the unbanked and allow people in emerging markets to keep their buying power, even when their national currency is being devalued.

Paolo Ardoino

He said between Tether’s battle-tested resilience in the face of market volatility and its industry-leading transparency practices, the company has proven that it can be trusted, and customers are responding in kind. He said the team is eager to continue maintaining its laser focus on emerging markets and will not waver in its efforts to expand access to financial freedom globally.

Read Also: Bitcoin Pizza Day: African crypto enthusiasts celebrate in style

Tether’s capacity to weather market turbulence has reinforced its reputation as a trustworthy institution, thanks to its demonstrated resilience and constant dedication to industry-leading transparency practices. As a result, clients are responding positively, realizing the value that Tether offers to the table.

Tether and other major stablecoins saw huge declines in market capitalization during the volatile times that shook the cryptocurrency industry last year, as investors got increasingly cautious and began withdrawing their investments.

A mind-blowing Q1 for Tether

Tether’s first-quarter performance was outstanding. It posted a net profit of $1.48 billion in its first-quarter earnings report, as well as a reserves surplus of $2.44 billion. Tether just declared that it will invest 15% of its profits in Bitcoin. This will enhance Tether’s Bitcoin holdings, which were previously reported to account for 2% of total reserves.

Tether has begun a sustainable bitcoin mining operation after the company announced in mid-May that 15% of its profits would be invested in bitcoin (BTC). Tether announced its investment in Citypay.io, a payment processing firm based in Georgia, on May 31.

Tether and African fintech firm Yellow Card, meanwhile, have recently completed Phase 1 of their Financial Literacy Tours. The release stated that “over 10,000 young people were reached” in African countries such as Nigeria, Kenya, and Ghana.