USDT/USD: Even though the stablecoin market is struggling, Tether's market cap has reached an all-time high

Even though the stablecoin market is in a bit of a downturn, Tether, the biggest stablecoin in the world, has just reached its highest market cap ever. USDT's market cap went over $83.2bn on Friday, leaving its main competitor Circle (USDC), whose market cap is about $28.8bn, far behind.

The market cap of all stablecoins is around $129 billion right now, and it has been basically going down since May 2023, when the crypto market as a whole started to sell off. On the other hand, Tether's has been going up since the start of 2023. Investors were worried about the security of USDC after it came out in March of this year that Circle had kept reserves at the failed Silicon Valley Bank.

Binance's stablecoin, BUSD, also ran into problems when the company that made it was told by New York financial officials in February to stop minting. Even though Tether is the leader in the market, it has had its own problems. Investors have been worried about how Tether keeps its tokens tied to the dollar for a long time, and the company was told to show how it does this last year. Even so, Tether has a big lead over the rest of the market for now.