MEXC Exchange/Learn/Featured Content/Tether's Decade Milestone: USDT as the Anchor, Building a $100 Billion Market Cap
Tether's Decade Milestone: USDT as the Anchor, Building a $100 Billion Market Cap
Related Articles
With the continuous development of the cryptocurrency market, the role of stablecoins has become increasingly important. Tether, as the world's first stablecoin pegged to the US dollar, has traversed a decade since its inception. Today, Tether, with a market capitalization of nearly $120 billion and over 350 million global users, significantly impacts the development of the cryptocurrency industry.
The Monumental Achievements of USDT
In 2014, Tether introduced USDT—the first stablecoin pegged to the US dollar. The emergence of stablecoins effectively addressed the issue of extreme price volatility in the traditional cryptocurrency market, providing investors with a reliable store of value and enhancing market stability.
Since its inception, USDT has demonstrated consistent growth. In August 2021, the market capitalization of the stablecoin sector surpassed $100 billion for the first time, with USDT ranking first at over $65 billion in market value. According to the latest data from IntoTheBlock, USDT's total market capitalization has now exceeded $126 billion, reaching an all-time high. In terms of market share and capitalization, USDT holds a dominant position in the stablecoin sector.
In addition, USDT's active user base continues to expand. Over the past twelve months, the number of new users grew by 24%. Although this growth rate has slowed compared to the 50% increase in the previous twelve months, it still maintains an upward trend. According to official disclosures from Tether, they currently has over 350 million users worldwide.
Starting with USDT, Ambitions Extend Beyond the Crypto Industry
Tether, which started with the stablecoin USDT, is now leveraging its unique strategic vision to expand beyond the cryptocurrency sector. From its origins as a stablecoin issuer, Tether has evolved into a comprehensive digital financial services provider, venturing into multiple fields. Each step Tether takes is marked by both challenges and opportunities.
- Diversified Stablecoin Portfolio
Following the success of USDT, Tether began to develop a diversified stablecoin product line to meet the needs of various markets and users. From stablecoins pegged to major currencies such as the euro, Chinese yuan, and Mexican peso, to exploring products linked to gold, and planning the launch of a stablecoin pegged to the UAE Dirham, each of Tether's strategic steps has captured market demand. The successive introduction of these products has not only significantly enriched Tether's stablecoin ecosystem but also secured a stronger position in the highly competitive cryptocurrency market.
- Entering New Fields and Expanding Diverse Investments
In 2023, Tether made significant progress in the cryptocurrency mining sector by participating in El Salvador's geothermal Bitcoin mining operations, investing $1 billion in the endeavor. Additionally, Tether established a Bitcoin mining facility in Uruguay.
Moreover, Tether CEO Paolo Ardoino revealed in an interview that Tether is well-funded and is actively entering multiple new fields, including artificial intelligence, with plans to challenge tech giants such as Microsoft, Google, and Amazon. In the realm of artificial intelligence, Tether has already made substantial strides. The company acquired a majority stake in the neural implant technology startup Blackrock Neurotech and invested in the data center operator Northern Data Group. Additionally, Tether's investment portfolio extends into other sectors. For instance, the company invested $100 million in the Latin American agricultural giant Adecoagro and has also expanded its operations into areas such as educational programs.
It is worth noting that data indicates Tether holds over $97 billion in U.S. Treasury bonds, marking an all-time high.
- Compliance Development
Compliance development has always been a central topic in the cryptocurrency industry, especially with the introduction of The Lummis-Gillibrand Payment Stablecoin Act and the MiCA legislation, which impose additional requirements on Tether. Tether has been actively responding to these changes by continually strengthening its compliance framework. Previously, in light of increasing regulatory scrutiny, Tether increased its lobbying efforts and announced in August of this year plans to double its workforce over the next year to bolster its capabilities in key areas such as compliance.
Ten Years of Glory, Promising Future Ahead
After ten years of navigating challenges and opportunities, Tether has transformed into a diversified financial giant. According to Tether's second-quarter audit report, Tether Holdings achieved a net profit of $5.2 billion in the first half of 2024, setting a historical record. Notably, the net operating profit for the second quarter was $1.3 billion, marking the highest quarterly profit to date.
As an industry-leading trading platform, MEXC offers users a wide range of popular USDT trading pairs, ensuring that they can easily and efficiently convert USDT to other cryptocurrencies on the platform. Additionally, MEXC implements multiple security measures, including but not limited to advanced encryption technology and stringent identity verification processes, to ensure secure and worry-free transactions.
Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, consultation, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.