What is the issuance and circulation volume of USDT coins?

As of December 2022, USDT's total issuance stands at around 69 billion USDT, with a slight gap between issuance and circulation due to periodic burning from the market.

Oct 06, 2024 at 08:24 am

Issuance and Circulation Volume of USDT Coins

1. Issuance

Tether Limited, the issuer of USDT, claims to back each USDT with one US dollar held as reserves. USDT is a stablecoin, meaning that its value is pegged to the US dollar and is designed to remain stable at $1.

2. Circulation Volume

As of December 2022, the total issuance of USDT stood at approximately 69 billion USDT. The circulation volume is slightly lower than the issuance volume due to USDT being burned from the market.

3. Dynamics of Issuance and Circulation

The issuance and circulation volume of USDT have been growing steadily since its launch in 2014. The fluctuations in issuance and circulation reflect the demand for USDT in the cryptocurrency market.

• Increase in issuance: Occurs when demand for USDT increases, such as during periods of market volatility or when traders seek a stable asset to hedge against price fluctuations.
• Decrease in circulation: Occurs when USDT is burned from the market, whether due to redemptions or transactions. Burning involves sending USDT to an unspendable address, effectively removing it from circulation.

4. Transparency and Audits

Tether Limited has faced scrutiny over its transparency and the backing of USDT with actual US dollar reserves. However, the company has undergone audits to verify the backing of USDT, including an audit by global accounting firm Moore Cayman.

5. Role in the Cryptocurrency Market

USDT has become a widely used stablecoin in the cryptocurrency market due to its stability and liquidity. It is commonly used for:

• Facilitating transactions between cryptocurrencies and fiat currencies
• Hedging against price volatility in cryptocurrency markets
• Storing value without the same volatility as volatile cryptocurrencies like Bitcoin

6. Market Capitalization

As of December 2022, USDT has the third-largest market capitalization among all cryptocurrencies, behind Bitcoin and Ethereum. Its market capitalization is approximately $68 billion.

In summary, USDT is a stablecoin backed by the US dollar and has a total issuance of approximately 69 billion USDT. The circulation volume of USDT has been growing steadily and plays a significant role in the cryptocurrency market as a stable store of value and medium of exchange.