2024 was a milestone year for the Tether (USDT) stablecoin - celebrating it's tenth anniversary while crossing a market cap of $100B.
Launched in 2014 under the original name "Realcoin," leading stablecoin Tether rebranded as TetherUSD (USDT) later in the same year. Its mission was to bridge the gap between traditional finance and digital assets by pegging to the U.S. dollar. This year, USDT has benefited from greater adoption and new use cases, especially as regulatory scrutiny and mainstream adoption around the crypto space intensified, driving traders and institutions to seek stability within the market.
According to data compiled by CCData, TetherUSD (USDT) achieved a new peak this October, with its market cap rising 0.57% to $120 billion - marking 14 consecutive months of growth and a commanding 69.6% market share. Not just that, it also powers nearly 65% of all spot trading and over 80% of derivatives volume on centralized exchanges (CEXs).
As of Q3 2024, the number of on-chain wallets that have received USDT has grown to 330mn wallets, with 36.3 million new wallets added in the last quarter. USDT also plays an essential role in high-inflation economies, providing millions with a USD-pegged option to preserve their purchasing power amidst economic instability.
This is even more significant considering other major stablecoins like USD Coin (USDC) dropped by 4.43% to $34.4 billion, its first decline since June, and MakerDAO’s DAI fell 2.43% to $4.90 billion. The declines were even more significant in other stablecoins - First Digital USD (FDUSD) and PayPalUSD (PYUSD) saw the steepest market dominance declines, decreasing by 7.83% and 9.41%, and the market cap to $2.30 billion and $630 million, respectively.
USDT’s soaring market cap and trading volume reflect growing confidence in its stability, especially during turbulent periods in the wider crypto market. Since it first reached $1 billion in market cap in December 2017, USDT has been instrumental in providing liquidity and reducing volatility. Tether’s recent expansion to Bitcoin's Layer 2 through Omnichain adds new dimensions to its utility, broadening its appeal across multiple blockchain networks.
As Tether continues to innovate and anchor the stablecoin space, it illustrates how digital assets can evolve to meet the needs of a dynamic financial ecosystem. Its growth story highlights both the demand for stability in the crypto market and the broader institutional interest in stablecoins, positioning USDT as a fundamental player in global finance.
Originally published at http://khanfk.substack.com.
