Tether’s share of the stablecoin market has grown to 75%, up from 55% two years ago, according to %Blockchain data analytics firm Token Terminal.
Tether’s USDT token is now the biggest stablecoin in the world.
%Stablecoins are %Cryptocurrencies whose value is pegged to another asset, typically the U.S. dollar or the price of gold.
Over the past two years, the supply of Tether’s USDT stablecoin has nearly doubled, growing to $118.6 billion U.S. of the $160 billion U.S. stablecoin market.
Token Terminal’s data also shows that the USDT stablecoin is now the third biggest cryptocurrency behind %Bitcoin (CRYPTO: $BTC) and %Ethereum (CRYPTO: $ETH).
The second largest stablecoin is currently Circle’s USDC, which is less than a third the size of Tether’s USDT token.
Stablecoins serve as a bridge between fiat money and digital assets and are critically important to the global cryptocurrency market.
Tether’s USDT stablecoin currently holds $97 billion U.S. worth of American Treasuries in its reserves, which are managed by financial services firm Cantor Fitzgerald.
Tether has said that it earns about $400 million U.S. a month in revenue from yields on its existing assets.
Stablecoins are growing increasingly popular and new entrants have emerged in the space.
Companies such as %PayPal (NASDAQ: $PYPL) have recently announced plans to launch stablecoins of their own in hopes of challenging Tether’s dominant market position.
