Stablecoin issuer Tether (USDT) achieved a historic web revenue of $4.52 billion within the first quarter regardless of dealing with a major drop in market share.
File web revenue
Based on the attestation report shared with CryptoSlate, the agency’s substantial earnings mainly originated from its US Treasury holdings, supplemented by positive factors from its Bitcoin and gold investments.
Paolo Ardoino, Tether CEO, stated:
“Tether has demonstrated its unwavering dedication to transparency, stability, liquidity, and accountable danger administration. As proven on this newest report, Tether continues to shatter data with a brand new revenue benchmark of $4.52 billion, reflecting the corporate’s sheer monetary energy and stability.”
As of March 31, 2024, Tether boasted a treasury portfolio exceeding $90 billion in US Treasury payments, encompassing direct and oblique holdings. Consequently, its surplus reserve surged by $1 billion, reaching almost $6.3 billion.
Concurrently, Tether Group’s fairness surged to $11.37 billion, a notable improve from the $7.01 billion reported on December 31, 2023.
The disclosure additionally affirmed that Tether-issued stablecoins stay backed by 90%, together with property corresponding to money and money equivalents, sustaining the reserve ratio according to the fourth quarter of final yr.
Particularly, Tether token reserves totaled roughly $110.3 billion, with liabilities amounting to round $104 billion. Nevertheless, the worth of property within the reserve surpassed liabilities by over $6 billion.
Declining market share
Regardless of minting $12.5 billion in new USDT tokens in the course of the first quarter, the agency is steadily dropping its market share as a result of intense competitors within the stablecoin market.
Based on Kaiko information, the stablecoin’s market share on centralized exchanges (CEXs) has dwindled to 69% year-to-date.
Throughout the first quarter, Tether encountered mounting competitors from stablecoins like FDUSD, which capitalized on Binance’s zero-fee promotions. Furthermore, USDC, backed by Circle, witnessed a surge in its market share to 11%, suggesting a rising inclination in the direction of regulated options.
Market observers additionally identified the emergence of modern yield-bearing options like Ethena’s USDe, that are impacting USDT’s dominance. Since its launch in February, USDe’s buying and selling quantity has skilled substantial progress, though it receded from April’s peak of over $800 million following Ethena’s ENA airdrop.
