Tether USDT's market share jumps 20%, hitting 75% in two years.

According to Token Terminal, Tether’s market share has surged by more than 20% in that period, now controlling over 75% of the stablecoin market. In a September 16 post on X (formerly Twitter), Token Terminal shared the following data:

“Tether has expanded its market share from 55% to 75% over the past two years. The supply of USDT stands at $118 billion and Tether's current market share is 75%."

Stablecoins serve as the primary bridge between fiat currencies and cryptocurrencies. Increasing stablecoin market capitalizations suggest that investors are more actively entering the crypto space. Tether, the issuer of the largest stablecoin, generated approximately $400 million in revenue in the 30 days leading up to September 16, according to Token Terminal. 

This revenue surge follows a record-breaking first quarter in 2024, during which Tether earned over $4.5 billion in profit. The $3.52 billion of this profit is from financial gains in Bitcoin and gold, while $1 billion was attributed to operating costs.

This growth period also coincides with a major appointment for Tether, as the company named Jesse Spiro, PayPal’s former head of regulatory relations, as its new head of government affairs on September 13.

Additionally, on August 13, Tether’s USDT balance on cryptocurrency exchanges reached a record high of $20.339 billion, indicating that investors are preparing to deploy these stablecoins into crypto assets. 

Historically, USDT balances rise during both bull and bear markets. In bearish conditions, an increase in USDT reserves suggests that traders are converting volatile cryptocurrencies into stablecoins for security. In bullish markets, it can signal that traders are holding stablecoins to make crypto purchases when prices dip.

As Tether continues to expand, the company plans to double its workforce to 200 employees by mid-2025, with a particular focus on enhancing its compliance team.