Over the past year ending on November 10, the market capitalization of the stablecoin USDT has risen by more than 42%. In this way, the token minted by Tether has consolidated itself as the largest of its kind, with a market capitalization reaching $123.28 billion dollars.
According to data from the CoinMarketCap portal , the stablecoin had a value of $86.79 billion by this date in 2023. This rapid growth is supported by investor confidence in the token despite the constant FUD promoted by some of its detractors.
The stablecoin’s market dominance is overwhelming, considering that the stablecoin sector as a whole is valued at $184 billion. The latter equates to an impressive 66.85% market dominance. To get an idea of the dimensions of USDT’s superiority, one need only compare it to the second-largest stablecoin, Circle’s USDC.
Even if USDT’s market cap were to freeze at last year’s November numbers, it would still be double that of USDC today. Circle’s stablecoin has a market cap of $37 billion, according to the same data portal.
USDT capitalization will continue to grow in the coming months
Overall, USDT is the third largest digital currency in the world, after Bitcoin and Ethereum. In terms of trading volume, it is the undisputed champion, as this token mediates virtually all existing cryptocurrency pairs.
Over the past few years, the stablecoin sector has seen a significant rise in competition. Firms such as PayPal already have their own stablecoins that represent the US dollar at a 1:1 ratio. Historically, the biggest concerns regarding USDT relate to the dollar-backed nature of the relationship with the US currency.
However, the firm claims that there are no mysteries and that anyone can audit its reserves, which perfectly match its circulation. Another accusation against Tether is the permissibility of the use of its token by governments sanctioned by the US. Likewise, the company claims that this activity is practically non-existent.
One unique aspect of USDT is that the vast majority of its circulation is concentrated on the Tron and Ethereum networks. Of the $123 billion, $61.79 billion is in the former and $57.93 billion is in the latter. Ton, Avalanche, and Solana each hold between $1 billion and $2 billion. The rest circulates on other networks.

Other stablecoins that are growing by leaps and bounds
With its market cap steadily increasing, USDT is consolidating its position as the absolute champion of the stablecoin sector. However, other tokens are making significant progress. For example, the aforementioned USDC from Circle is experiencing notable growth.
Thus, in the same annual period ending on November 10, the capitalization of this token grew by 53.23%. Although it grew more than USDT in percentage terms, in magnitude it is a small part compared to the capitalization of its rival. Meanwhile, the PayPal coin (PYUSD) grew year-on-year by 109.33%. Likewise, this rapid rise does not represent a threat to USDT at all.
Circle’s USDC, the second largest after USDT, has a market share of 20.11%. PYUSD, which is ranked 6th in the stablecoin ranking, has a market share of just 0.29%.

Tether, the company behind the USDT stablecoin, has started financing oil deals. Recently, its investment team helped fund a $45 million transaction for 670,000 barrels of crude oil from the Middle East. This move shows Tether’s goal to expand beyond just digital currency. By entering the $10 trillion trade finance market, Tether aims to make cross-border payments faster and cheaper, using USDT.
Besides stablecoins, Tether is branching into other areas like Bitcoin mining, artificial intelligence, and venture capital. This means Tether wants to be a big player not only in the crypto world but also in traditional finance. CEO Paolo Ardoino views this oil deal as a first step towards supporting more industries with Tether’s financial solutions.
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