- Tether has advanced its circulating supply after almost experiencing 3 months of decline.
- The latest reports reveal that there are about 66.3 billion USDT in circulation, with 43 percent of the market share.
- The rival company Circle has also grown its market share to 36 percent with $54.5 billion in market cap.
Tether(USDT), the world’s largest stablecoin, has increased its circulating supply after almost three months of the sharp deduction. It might also be a sign that now the crypto market is slowly recovering from its bottom.
As per the latest reports, the first mint of approximately three months took place on Friday, also three more are there, with the most recent one on Tuesday.
However, the USDT inflows were moderate, increasing Tether’s market capitalization by only 0.7 percent or a little below $500 million.
Now there are about 66.3 billion USDT in circulation if we consider the Tether transparency report. This number makes the market share of around 43 percent of the stablecoin.
In early May, Tether supply reached its all-time high when it reached 83 billion USDT. The company has to limit the circulating supply due to the collapse of the Terra ecosystem, resultant crypto contagion, and huge-scale redemptions. This all resulted in the fall of the circulating supply by 21 percent to a low of 65.8 billion in late July.
Due to all this, the rival company Circle has been able to grow the market share of its stablecoin USD Coin (USDC), which now contributes to 36 percent of the market share with a $54.5 billion market cap.
As per reports, last month, USDC volume on Ethereum actually reversed Tether for the time being as the number two stablecoin resumes to catch up.
Stablecoins currently account for 13.6 percent of the total market capitalization of cryptocurrencies, which is close enough to their all-time highs.
An increase in global inflation, which has caused a crisis in the cost of living, has affected and slowed down the ability of retail traders to invest and speculate on cryptocurrencies.
But people living in countries with high inflation rates, such as Argentina, have relied on stablecoins and kept their hands on the United States dollar-pegged stablecoins as a hedge against their own currencies.