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USDT Soars to Record Market Cap as Rivals Falter Amid Regulatory Pressures

USDT Soars to Record Market Cap as Rivals Falter Amid Regulatory Pressures

Tether's market dominance persists as other stablecoin issuers face regulatory issues.

Tether (USDT) reaches its all-time high (ATH) market capitalization exceeding $83 billion.

In particular, at the time of writing, USDT market capitalization stands at $83.3 billion, despite the 0.23% price drop in the last 24 hours.

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In a recent tweet, Binance CEO Changpeng "CZ" Zhao highlighted the regulatory pressures faced by a stablecoin bearing the Binance brand and issued by Paxos, Binance USD (BUSD).

Notably, BUSD is a fully regulated stablecoin that, according to CZ, has been “capped” by the New York Department of Financial Services (NYDFS) at $23 billion, with its current market cap sitting at $5 billion. In contrast, USDT has flourished remarkably during the same period.

Back in February, the NYDFS ordered Paxos to stop issuing any more BUSD, citing security law infringements.

This order came as USDT reached new market cap heights while competitors like Circle's USD Coin (USDC) and BUSD struggled to hold onto their market share.

The current market cap of USDC, the second-largest stablecoin, is $28.8 billion. Interestingly, there was a time when USDC was nearly overtaking USDT. In June 2022, USDC achieved an ATH of $55.8 billion in market cap.

The decline in market share of these stablecoins can be attributed to intensified regulatory scrutiny in the United States, as well as a US banking crisis. After the NYDFS banned further BUSD minting due to security violations, its market cap witnessed a steep decline as holders swapped their BUSD for other stablecoins.

The turning point for USDC was the collapse of the Silicon Valley Bank, where the stablecoin issuer held approximately $3.3 billion in reserves. This caused a wave of panic in the market and a subsequent temporary de-pegging from the US dollar.

The regulatory landscape has shown its influence over the stablecoin market as Tether attains record-breaking capitalization, while its rivals, BUSD and USDC, face a rocky road ahead. Amid ongoing regulatory challenges, it remains to be seen how these digital assets will fare in the future.

Gile K., Market Sentiment Analyst
Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
When she's not researching the trustworthiness of mainstream stories, she spends time enjoying her terrace view and taking meticulous care of her outdoor environment.



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