In 2023, the profits of Tether could surpass those of BlackRock, reaching up to 6 billion dollars, according to forecasts. This optimistic projection fits into the context an increase of 25.7% of the circulating supply of USDT this year, now accounting for 7% of the total cryptocurrency market capitalization.
In contrast, rival Circle recorded a decrease of 36% of its USDC stablecoin offering, primarily due to regulatory exposure and exposure losses at Silicon Valley Bank.
The Reign of USDT: The Colossal Power of the $6 Billion Stablecoin
The issuer of the stablecoin, Tether, could become one of the most profitable companies in America this year. According to some analysts, its profits could even exceed those of the asset manager BlackRock.
Crypto industry analysts reacted to a report from Barron’s on the rise of Tether’s issuer. Analysts estimate that Tether’s earnings could reach $6 billion this year, exceeding those of BlackRock, which are estimated at $5.5 billion. Thanks to the fact that USDT is backed by US Treasury bonds high yield.
On June 22, Barron’s reported that stablecoin firm Tether crushes the competition in the crypto world. It behaves like a bank by investing user deposits in reserves such as treasury bills, allowing it to generate a 5% return.
On June 25, Nic Carter, Partner at Castle Island Ventures, commented on the report along with ETF expert Nate Geraci. “Tether is the most profitable company per employee on the planet”.
Tether plans to achieve a record net profit of $1.48 billion in the first quarter, with excess reserves of $2.44 billion. By comparison, the Coinbase exchange is expected to record a loss of $564 million in 2023.
The meteoric rise of the stablecoin Tether comes at the expense of Circle
Demand for USDT stablecoins from Tether continues to grow. Since the start of the year, Tether’s circulating supply has seen a significant increase of 25.7%reaching a record high of $83 billion.
This impressive growth gives it a considerable market share of 64%, representing nearly 7% of the total capitalization of the cryptocurrency market. This performance demonstrates investor confidence in the stability and liquidity offered by Tether stablecoins.
The situation is different for rival company Circle, which is more exposed to US regulators and institutions. Therefore, the supply of the USDC stablecoin has dropped considerably this year due to losses related to its exposure to Silicon Valley Bank.
Since the beginning of the year, the USDC supply has decreased by 36%, or $16 billion. Currently, its circulation has returned to levels similar to September 2021, reaching approximately $28.5 billionwhich represents a market share of 22%.
Source : beincrypto