Tether USDT processed $18.2 trillion in transactions in 2022, inserting it forward of conventional fee processors like Visa and Mastercard, in keeping with a January 14 tweet.
Compared, Mastercard and Visa processed transactions value $14.1 trillion and $7.7 trillion, respectively.
Tether’s excessive transaction quantity testifies to the large progress of stablecoins over the previous years. Regardless of the challenges dealing with the crypto trade, stablecoins appeared to have thrived. Stablecoin adoption grew in nations the place the present financial scenario has positioned their nationwide fiat foreign money at a drawback.
Tether Had a Troublesome 2022
Regardless of the rising adoption of stablecoins in 2022, Tether had a considerably tough yr.
Over the previous yr, Tether has seen extra considerations raised about its reserves and its solvency following the collapse of Terra UST in Might and the FTX crypto alternate in November.
The stablecoin briefly misplaced its peg to the US Greenback on the top of Terra’s crash FUD. Throughout this era, the stablecoin issuer honored over $10 billion in redemptions. BeinCrypto later reported that a number of conventional monetary establishments took brief positions in opposition to USDT due to the speculations surrounding its monetary well being.
USDT Market Cap Declined
Whereas USDT stays the dominant stablecoin within the crypto market, rivals like USDC and BUSD recorded victories in opposition to it in 2022. For context, Tether’s market cap declined from a peak of $83.13 billion to as little as $65.31 billion over the reporting interval. However, USDC’s market cap grew to $56 billion earlier than declining.
Throughout this era, centralized crypto exchanges like Coinbase urged its customers to transform their USDT holdings into USDC. Extra just lately, Crypto.com delisted USDT for its Canadian customers, citing regulatory compliance measures.
Glassnode knowledge confirmed that USDC’s switch volumes exceeded that of USDT virtually 5 occasions in direction of the tip of 2022. USDC’s adoption has grown as a result of traders consider it’s a safer possibility than USDT.
USDC’s belongings are backed by money or short-term United States treasuries, and international accounting agency Grant Thornton audits it. However, Tether has not been very forthcoming with its reserves or its audits.
These points have made some crypto neighborhood members query Tether’s knowledge on its 2022 buying and selling quantity. Some attributed the metrics to clean buying and selling, whereas others requested the stablecoin issuer to publish its reserves.
Disclaimer
BeInCrypto has reached out to firm or particular person concerned within the story to get an official assertion in regards to the current developments, however it has but to listen to again.
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