Tether: the market cap of USDT rises 10% but other stablecoins fall

Tether (USDT) maintains its leadership with a 10% increase in market cap over the past month. In contrast, other stablecoins such as USD Coin (USDC), Binance USD (BUSD), and DAI record a continuous decline.

Timeline of Tether

The market capitalization of the popular stablecoin tether (USDT) has risen as other stablecoins, including Circle's USD coin (USDC) and MakerDAO's DAI briefly lost their pegs over the weekend.

In a rapid turn of events, Tether's stablecoin dominance has surged to its highest point in a year and a half, a feat crypto watchers attribute to difficulties surrounding rival stablecoins USDC and BUSD.

The market reacted with a big sell-off, depegging the stablecoin from the dollar, just after Circle disclosed Silicon Valley Bank did not transfer $3.3 billion of its USD Coin holdings. Not all crypto investors, however, had the good fortune to escape from the unforeseen condition with their funds.

Key Points: Tether, one of the world's major stablecoin issuers, has accused The Wall Street Journal (WSJ) of printing and distributing misleading information about the firm and its procedures.

In 2022, however, the implosion of the algorithmic stablecoin UST had put fears into circulation that also concerned Tether's resilience. And so its market capitalization declined, due to many USDT returns.

Tether (CRYPTO: USDT), faced a critical situation in late 2018 when its parent company and affiliates struggled to maintain access to the global banking system. A recent review of emails and documents revealed that the companies took the recourse of shadowy intermediaries, fake documents, and shell companies to reinstate their access as reported by the Wall Street journal.

Tether's woes look like they are not going away soon, with the company in a fraud scandal. According to a report by WSJ, top shareholders backing the company made fake documents and shell companies to help the company enter the mainstream payment system.

A report by The Wall Street Journal reveals the alleged illicit acts of Bitfinex and Tether in 2018. This is one of the many legal issues and controversies that have characterized Tether since its launch in 2014.

Some companies in Venezuela are using the stablecoin tether as a way of sidestepping sanctions and settling payments with foreign customers and providers. Local reports indicate that, while the most popular use case for the stablecoin involves its purchase for devaluation shielding purposes, a handful of companies are also harnessing it in this way.

Popular crypto exchanges KuCoin and Huobi have come under fire for failing to comply with the sanctions imposed on Russia in light of its conflict with Ukraine. The Seychelles-based firms have a considerable presence in the crypto space and are counted among the world's largest crypto exchanges.