Tether Surpasses $115 Billion Market Cap as It Prepares to Battle Celsius in Court
Tether’s USDT has reached a significant milestone, surpassing a market capitalization of $115 billion.
This achievement solidifies Tether’s position as the third largest cryptocurrency by market cap and the leading stablecoin, commanding over 70% of the market share.
Paolo Ardoino, Tether’s CEO, shared the news with his 235,000 followers on X and emphasized the growing role of stablecoins in the cryptocurrency ecosystem.
In a statement to Crypto.News, Ardoino highlighted that USDT’s surge reflects its increasing adoption beyond cryptocurrency trading, serving as an alternative to traditional savings and checking accounts, especially in regions dealing with currency devaluation.
The rise in USDT’s market cap is attributed to its stable value, which has made it a popular choice for daily transactions among global crypto enthusiasts. In fact, data from Into the Block shows a 40% increase in Tether’s market capitalization since September 2023. Additionally, blockchain analyst Lookonchain revealed that $1.3 billion worth of USDT has been transferred to major centralized exchanges following a recent market downturn.
Tether to Fight Celsius in Court
Nonethtless, despite its success, Tether has faced scrutiny over its involvement in illicit activities. The company has taken measures to address these concerns, including collaborating with Chainalysis to monitor USDT transactions and promote transparency.
In a separate development, Tether is embroiled in a legal dispute with Celsius Network. Filed on August 9 in the U.S. Bankruptcy Court for the Southern District of New York, the lawsuit seeks to reclaim $2.4 billion in Bitcoin that Celsius claims was improperly liquidated by Tether before its bankruptcy. Tether has described the lawsuit as a “baseless shakedown” and plans to defend itself vigorously in court.
Additionally, Tether recently announced it will cease minting USDT on the Algorand and EOS blockchains, focusing instead on optimizing its blockchain ecosystem. Despite this, the company will continue to support the redemption of USDT on these platforms for the next year.
Tether’s financial health remains strong, with a reported $5.2 billion profit for the first half of 2024 and $12 billion in consolidated equity as of June 30, 2024. However, questions about its Bitcoin holdings and legal challenges continue to shape the company’s narrative as it navigates a complex landscape of regulatory and financial scrutiny.
