Tether USDT market cap breaks ATH, Binance CEO points at regulatory caps

For context, at one point, USDCs market dominance was nearing that of USDT, with its market cap reaching an ATH of $55.8 billion in June 2022. Source: CoinMarketCapThe prolonged bear market of 2022 took its toll on both stablecoins, with declines in their market caps after the June 2022 highs. USDT has managed to bounce back with higher market supremacy, while USDCs market cap has been cut practically in half.Related: Are stablecoins securities?

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The Tether (USDT) stablecoin has actually hit a brand-new all-time-high (ATH) market capitalization of over $83 billion as its market dominance continues. The brand-new ATH market cap for USDT comes in a year when other stablecoin providers struggle to remain afloat due to regulative issues. The Binance CEO said BUSD, a completely controlled stablecoin, was “topped” by the New York Department of Financial Services (NYDFS) at $23 billion and currently sits at a $5 billion market cap, and because then, USDT has seen tremendous growth.BUSD, a totally regulated stablecoin, was “topped” (no new minting) by NYDFS at $23b.

In February, the NYDFS ordered Paxos to stop any new issuance of BUSD, mentioning offenses of security laws. At a time when USDT has reached an ATH market cap, its rivals, such as Circle-issued USD Coin (USDC) and BUSD, are having a hard time to maintain their market share. The second-largest stablecoin, USDCs market cap stands at $28.8 billion, a difference of over $50 billion to USDT. For context, at one point, USDCs market supremacy was nearing that of USDT, with its market cap reaching an ATH of $55.8 billion in June 2022. USDC all-time market cap chart. Source: CoinMarketCapThe lengthened bear market of 2022 took its toll on both stablecoins, with declines in their market caps after the June 2022 highs. Nevertheless, USDT has handled to recover with greater market supremacy, while USDCs market cap has been cut practically in half.Related: Are stablecoins securities? Well, its not so simple, say lawyersThe prominent reason for the decrease in the market share of other stablecoins can be attributed to regulative analysis by United States regulators and the U.S. banking crisis. After a ban on brand-new minting of BUSD for security infractions, its market cap dropped rapidly as users began to transform their BUSD t other stablecoins. For USDC, the major crisis came in the form of the collapse of the Silicon Valley Bank where the stablecoin issuer held about $3.3 billion in reserves. This resulted in market panic and a subsequent depegging from the U.S. dollar. USDC re-pegged the next day it took a significant toll on its market cap as lots of converted their USDC to other stablecoins in fear of a total crash. Publication: Moral duty– Can blockchain truly improve trust in AI?