Tether MarketCap Is $81.4B, Almost Full Recovery Of Lost Value After Terra Incident
Key Points:
- CoinMarketCap data shows that the total market value of Tether has reached $81.4 billion.
- The market value of USDT dropped by almost 20% in Q2 2022 following the LUNA-UST crypto crash.
- The strong recovery of USDT is mainly due to USDC and BUSD’s successive regulatory blows and the banking crisis this year.
According to Bloomberg News, CoinMarketCap data shows that Tether is on a solid recovery from the LUNA-UST crypto crash last May. Much of this is due to the weakness of USDC and BUSD.
According to CoinMarketCap data, the total market value of USDT has reached $81.4 billion. That amount peaked at around $83 billion last May when the Terra incident led investors to widespread dumping of the cryptocurrency. The crisis caused Tether’s assets to drop by nearly 20% in the second quarter of last year.
USDT dropped below $1 when TerraUSD exploded and again in November when FTX failed. The quality of the assets used by Tether for that reserve has been questioned in the past, and regulators globally have turned their attention to stablecoin issuers.
Tether has profited this year from both the market surge that has brought Bitcoin prices up by almost 70% and the financial unrest that has hurt competitors like Circle’s USD Coin. Additionally, more merchants are reportedly leaving the US due to the evolving regulatory climate, and the British Virgin Islands is where Tether is headquartered. In the meantime, Circle has experienced an approximately 30% decline in USDC assets this year, which is being controlled from Boston.
Additionally, Tether appears to profit from the recent trend of financial institutions shunning consumers who use cryptocurrencies. Because of this, stablecoins like Tether are one of the only practical options for investing in cryptocurrencies.
At the same time, the US Securities and Exchange Commission and state regulators have stepped up enforcement actions. Paxos Trust Co. stopped issuing the Binance-branded stablecoin BUSD after objections from New York and the SEC. According to CoinMarketCap, the market capitalization of BUSD has dropped about 60% since the beginning of the year.
The strength of the USDT issuer is that its reserves have yet to be independently audited through its constantly updated reports. A few years ago, it reached an agreement with New York about mixing up the money and lying about the reserves, and the conclusion showed that the company did not admit any wrongdoing.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
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Tether MarketCap Is $81.4B, Almost Full Recovery Of Lost Value After Terra Incident
Key Points:
- CoinMarketCap data shows that the total market value of Tether has reached $81.4 billion.
- The market value of USDT dropped by almost 20% in Q2 2022 following the LUNA-UST crypto crash.
- The strong recovery of USDT is mainly due to USDC and BUSD’s successive regulatory blows and the banking crisis this year.
According to Bloomberg News, CoinMarketCap data shows that Tether is on a solid recovery from the LUNA-UST crypto crash last May. Much of this is due to the weakness of USDC and BUSD.
According to CoinMarketCap data, the total market value of USDT has reached $81.4 billion. That amount peaked at around $83 billion last May when the Terra incident led investors to widespread dumping of the cryptocurrency. The crisis caused Tether’s assets to drop by nearly 20% in the second quarter of last year.
USDT dropped below $1 when TerraUSD exploded and again in November when FTX failed. The quality of the assets used by Tether for that reserve has been questioned in the past, and regulators globally have turned their attention to stablecoin issuers.
Tether has profited this year from both the market surge that has brought Bitcoin prices up by almost 70% and the financial unrest that has hurt competitors like Circle’s USD Coin. Additionally, more merchants are reportedly leaving the US due to the evolving regulatory climate, and the British Virgin Islands is where Tether is headquartered. In the meantime, Circle has experienced an approximately 30% decline in USDC assets this year, which is being controlled from Boston.
Additionally, Tether appears to profit from the recent trend of financial institutions shunning consumers who use cryptocurrencies. Because of this, stablecoins like Tether are one of the only practical options for investing in cryptocurrencies.
At the same time, the US Securities and Exchange Commission and state regulators have stepped up enforcement actions. Paxos Trust Co. stopped issuing the Binance-branded stablecoin BUSD after objections from New York and the SEC. According to CoinMarketCap, the market capitalization of BUSD has dropped about 60% since the beginning of the year.
The strength of the USDT issuer is that its reserves have yet to be independently audited through its constantly updated reports. A few years ago, it reached an agreement with New York about mixing up the money and lying about the reserves, and the conclusion showed that the company did not admit any wrongdoing.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
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