Tether's USDt Stablecoin Surpasses $150 Billion Market Cap, Solidifying Its Dominance as the Leading Stablecoin

Tether’s USDt stablecoin has officially crossed the $150 billion market capitalization milestone, according to CoinMarketCap data.

At present, USDt commands a 61% share of the total stablecoin market by circulating supply, rendering it the leading stablecoin and a critical pillar of the digital asset economy. Its closest competitor, Circle’s USDC, holds nearly 25%.

The record-setting figure also showcases a 36% increase in circulating supply over the past year, with a notable acceleration in growth following the election of U.S. President Donald Trump in November 2024.

Stablecoins Surge Amid Broader Crypto Adoption

The growth in Tether’s market cap is part of a broader trend in the stablecoin ecosystem. Recent data from analytics platforms Dune and Artemis indicate that the number of active stablecoin wallets has surged from 19.6 million to over 30 million in the past year – an increase of more than 50%.

As stablecoins continue to be a key source of on-chain liquidity and an essential tool for crypto traders, USDt remains central to that infrastructure.

As the world’s largest stablecoin, USDt functions as a barometer for overall crypto market activity, reflecting demand for digital assets, cross-border settlement, and decentralized finance (DeFi) participation.

Tether Eyes U.S. Market with Domestic Stablecoin Plans

Despite its dominance in international markets, Tether remains largely restricted in the United States, where regulatory frameworks for stablecoins are still evolving. However, the company is now preparing a strategic move to re-enter the U.S. market with a new, dollar-backed stablecoin designed specifically for domestic use.

“A domestic stablecoin would be different from the international stablecoin,” – Paolo Ardoino, CEO of Tether, speaking at Token2049 in Dubai

According to CNBC, Tether has been incrementally increasing its lobbying efforts in Washington D.C., aligning with the emerging legislative momentum. U.S. lawmakers are currently examining several bills focused on stablecoin regulation, including the STABLE Act, introduced by House Financial Services Committee Chair French Hill and Subcommittee Chair Bryan Steil.

While the STABLE Act aims to create a national framework for stablecoin issuance, it has not gone unchallenged. During a Feb. 11 2024 House Subcommittee hearing, former CFTC Chair, Timothy Massad, criticized the bill, highlighting a lack of federal oversight and the potential for “weak state standards” if stablecoin regulation is delegated too loosely.

Tether’s increased engagement with policymakers suggests it is keen to avoid the compliance pitfalls that have limited its presence in the U.S. to date. If successful, a compliant domestic stablecoin from Tether could unlock a significant new wave of adoption, particularly as traditional financial institutions and fintech platforms seek tokenized dollar alternatives.

Tether’s $150 billion milestone is not just a number – it’s a marker of how deeply stablecoins have embedded themselves into the global crypto infrastructure.

As regulatory clarity emerges and usage expands, Tether’s push into the U.S. market signals a pivotal evolution for the company and for stablecoin adoption more broadly.

Whether Tether can maintain its dominance amid rising competition and tighter regulation remains to be seen. But for now, USDt’s record-breaking market cap underscores its role as the heartbeat of crypto’s dollar-based economy.