Largest stablecoin issuer in the market Tether has recovered all of the $20 billion it lost in 2022, after TerraUSD collapsed as it hits a new record-breaking market capitalization of $83.2 billion.
Tether’s proven resilience and unwavering commitment to industry-leading transparency practices, and its ability to weather market volatility have solidified its reputation as a trustworthy platform.
Speaking on its recovery and record-high market capitalization, CTO of Tether Paolo Ardoino said,
“Today’s numbers demonstrate that people want access to financial freedom, and when given that access, they will make use of it. Between our battle-tested resilience in the face of market volatility and our industry-leading transparency practices, Tether has proven that it can be trusted, and customers are responding in kind.
“Tether tokens offer a safe harbor for the unbanked and allow people in emerging markets to keep their buying power, even when their national currency is being devalued”.
Analysts at digital asset research Conor Ryder said that Tether’s rise suggests peg stability is far more important for most stablecoin holders than issuer transparency.
The company’s recent surge in market capitalization and its successful recovery from last year’s setback signify a pivotal moment for stablecoins and the overall crypto landscape. It also reinforces Tether’s position as a trusted and resilient player, instilling confidence in investors and further solidifying stablecoins as a crucial component of the cryptocurrency ecosystem.
Tether’s judicious management of its assets has been instrumental in this recovery. With approximately 85% of its holdings in cash, cash equivalents, and short-term deposits, it exhibits a robust asset base.
Recall that the instability that shook the crypto market last year saw Tether as well as other stable coins lose a huge part of their market cap which saw investors exit the market in drove.
Meanwhile, Investors King understands that while Tether has managed to recover its market value other stablecoins such as USD Coin (USDC), have struggled to regain their previous market capitalization levels. Analysts suggest that it implies that investors’ confidence may not be fully restored in the stablecoin sector yet.
