Tether USDT Stays Strong as Top Stablecoin in Crypto

Tether (USDT) is the most popular stablecoin in the world, and it is constantly strengthening its influence in the cryptocurrency market. At the time of writing (August 6, 2025), USDT ranks fourth among all cryptocurrencies, with a market capitalization of 163.9 billion dollars, showing a slight 0.01 percent increase over the last 30 days.

It boasts a superb trading volume, with a 24-hour volume of $95.11 billion, indicating that a significant portion, 58.01 percent, of its market value is traded. This trading volume signifies matchless liquidity and widespread application.

Tether is also the most traded stablecoin in the entire world, with the total supply amounting to 167.78 billion USDT, and the circulating supply being 163.89 billion. It enables a seamless transition to other blockchains, facilitating smooth transactions.

Introduced in 2014 by Tether Limited, USDT is designed to be pegged 1:1 with the U.S. dollar, ensuring stability in the unpredictable crypto market. Unlike other cryptocurrencies that experience significant price fluctuations, USDT maintains a stable value around 1.00, with a minimal volatility of 0.02 percent over the last 24 hours.

This stability renders it the choice of traders and investors looking to have a haven when the markets are turbulent. The reserves held by Tether include U.S. Treasuries and cash equivalents, and their assets are used to achieve their peg.

Tether also has reserves in other investments, and the company reports over $127 billion of its reserves invested in U.S. Government debt at the end of Q2 2025, making it one of the largest holders of U.S. government debt.

Unmatched Trading Volume and Market Reach

The superiority of Tether could be seen in its trade volume that tends to exceed that of Bitcoin. The USDT has a trading volume of 95.11 billion USDT in the past 24 hours alone, which is 2.33 times more than was observed the previous day.

This strong liquidity is seen as an essential part of the crypto ecosystem, especially on exchanges that have low amounts of fiat trading pairs. USDT is a suitable alternative to the U.S. dollar.

The dollar makes it viable to shift money easily between wallets and exchanges. Its availability across multiple blockchains, with the highest supply on Tron (exceeding 51.6 billion tokens) and Ethereum (approximately 35.4 billion tokens), enhances its overall availability and functionality.

The immense popularity of the stablecoin is also evident in the significant growth of its audience over the previous year, with a 51% increase and approximately 350 million users worldwide as of July 2024.

This sees Tether gaining prominence as a part of decentralized Finance (DeFi) platforms and cross-border payments, as well as in real-life use in money transactions, eg, at 24 ATMs across Brazil and now new stablecoin ATMs in South Korea.

Its flexibility has seen Tether become a commonplace investment tool among retail and institutional traders, and there are now more than 27,000 merchants worldwide accepting payments in USDT via crypto payment gateways such as BitPay and CoinGate by Q1 2025.

Regulatory Changes and Strategic Expansion

Tether is not only expanding its business in stablecoins. During Q2 2025, the organization announced a new issue of USDT worth $20 billion, which increased its overall circulating supply to more than $157 billion throughout the year.

The growth comes as Tether has made strategic investments in artificial intelligence, sustainable energy, and bi-products, including a 70 percent share in Latin American farming company Adecoagro as a route to insert USDT into commodities markets. Also, Tether created a gold-based stable coin, the Tether Gold (XAU ), which trades on exchanges such as Mobee in Indonesia, further diversifying its assets.

Tether has also been influenced by developments in the regulatory sphere. The 2025 enactment of the U.S. GENIUS Act has sparked debates about a possible re-entry of Tether to the U.S. market, specializing in providing services to institutions.

Although the firm reached an agreement with the New York Attorney General in 2021 and faced criticism over its reserves, Tether has since increased disclosure by updating the quarterly attestation report by BDO, which has confirmed a total of $118.4 billion in reserves as of August 2024. These actions have enhanced the assurance of the 1:1 backing of USDT, as real-time peg checking tools such as Curve.fi indicate that deviations are gauged under 0.1% of a dollar.

Troubles and Debates

Tether has had some problems, despite that. There has been criticism of the lack of transparency in its reserves and possible systemic threats in the case of large-scale redemptions in times of market falls.

Skepticism has been caused by historical events like a 2017 hack of 31 million USDT and a 2018 peg by almost 10 percent to 0.91. Nevertheless, the automated redemption mechanism and the reforms in the reserve have stabilized the peg of Tether, and in the last couple of years, there have been no big swings to be observed.

This is evident by the fact that the company worked in cooperation with TRM Labs and Tron in reducing illegal use of the company by freezing $12 million of USDT associated with fraud in 2024.

Tether’s Role in the Future of Crypto

As far as the future of the crypto industry is concerned, it seems that Tether is destined to strengthen its position. Its reliance on the stablecoin market (it controls 70 percent of the market) and its inclusion in DeFi as well as the real-life environment make it one of the players to close the gap between conventional finance and blockchain technology.

The Q2 2025 profit of the company $4.9 billion, and year-to-date $5.7 billion, speaks to the company’s financial strength and the capability to endure regulatory and market situations. With the growing popularity of cryptocurrencies in mainstream society, Tether will likely remain vital to traders, merchants, and institutions alike due to its stability and liquidity.

The resiliency of Tether can be highlighted by its successful preservation of the peg, increased use case, and regulatory changes. Whether it is in cross-border payments or powering up DeFi protocols, USDT is here to stay and is leading the changes in digital currency finance with a stable and secure one in the turbulent market.