0xdAC17F95...3D831ec7Cycle Potential
1x
vs. bull target
Probability
95%
Success chance
Risk Level
6/10
Medium Risk
Market Cap
$185.47B
Volume
$244.28B
← Swipe to see more →
Tether (USDT) is the world's largest stablecoin with a market cap of $185.24 billion and approximately 62% of the global stablecoin market share as of February 2026, though dominance has declined from 59.80% in January as the overall stablecoin market surpasses $300 billion. It ranks #3 among all cryptocurrencies with significant trading volume, while USDC has grown to $75.12 billion after a 73% increase in 2025 versus USDT's 36% growth. USDT maintains 1:1 USD backing through reserves exceeding $186.5 billion in liabilities, with $141 billion in U.S. Treasury exposure making Tether one of the largest holders of U.S. government debt globally. The company massively expanded holdings to 96,000+ BTC ($8.4 billion) and approximately 140 tons of gold ($24 billion, becoming one of the largest non-governmental gold holders), with $6.3 billion in excess equity above liabilities. Tether generated over $10 billion in net profit for full year 2025 per the Q4 2025 BDO attestation published January 30, 2026. The company launched USAT in January 2026 for GENIUS Act compliance while maintaining USDT globally, though MiCA non-compliance has caused permanent EU exchange delistings.
USDT serves as the crypto market's primary trading tool and liquidity vehicle rather than an appreciating investment. Hold USDT for superior liquidity when actively trading across multiple exchanges and cryptocurrency pairs, though market dominance has declined to approximately 62% in February 2026 as USDC grew 73% in 2025 versus USDT's 36% growth. USDT is particularly valuable for traders in emerging markets seeking dollar exposure and protection against local currency devaluation, and for those needing low-cost cross-border transfers. While transparency concerns persist with Tether relying on quarterly BDO attestations without Big Four audits, the company's Q4 2025 attestation (published January 30, 2026) shows strong financials with $141 billion in U.S. Treasury holdings, 96,000+ BTC ($8.4 billion), approximately 140 tons of gold ($24 billion making it one of the largest non-governmental gold holders), and $6.3 billion in surplus reserves after generating $10 billion in net profit for full year 2025. Tether launched USAT in January 2026 through Anchorage Digital Bank for GENIUS Act compliance (deadline November 2026) while maintaining USDT globally under foreign issuer pathways. However, MiCA non-compliance continues causing permanent EU exchange delistings from Coinbase, Binance, and Kraken since March 2025, and the $32.8 billion in volatile assets (17.7% of reserves) creates potential peg instability during market crashes. USDT is best used as a temporary store of value and medium of exchange rather than a long-term hold.
Score: 65/100 | Upside: 1x
Learn how we evaluate crypto fundamentals across 6 pillars.
View MethodologyDisclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions. Cryptocurrency investments are volatile and carry significant risk.
USDT maintains dominance in the stablecoin market with approximately 62% market share ($185.24 billion) versus USDC's $75.12 billion market cap as of February 2026 in a total stablecoin market surpassing $300 billion, though USDT dominance is declining as USDC grew 73% in 2025 versus USDT's 36% growth. While USDC has positioned itself as the gold standard for transparency with monthly attestations and simple reserves held in BlackRock-managed funds, USDT retains its lead through first-mover advantage, deeper liquidity, and stronger adoption in offshore and emerging markets. Combined, Tether and USDC control over 90% of the total stablecoin market value. USDT is the preferred trader's dollar for high-frequency trading, arbitrage, and international remittances, with strong adoption in non-U.S. markets. USDC dominates in regulated U.S. business, DeFi protocols requiring compliance, and institutional trading. Tether's dual-track strategy launched USAT in January 2026 through Anchorage Digital Bank for GENIUS Act compliance (deadline November 2026) while maintaining USDT globally under foreign issuer pathways, though this creates fragmentation. USDT faces permanent delistings from Coinbase, Binance, Kraken, and Crypto.com in the EEA since March 2025 due to MiCA non-compliance. The market has bifurcated with USDC and emerging MiCA-compliant alternatives capturing the European regulatory market while USDT dominates in liquidity-focused and offshore trading markets. Capital is flowing from unregulated stablecoins to permitted stablecoins under the GENIUS Act framework, with institutions favoring regulated options like USDC which has been integrated by Visa, Mastercard, and BlackRock for settlement and treasury operations.
USDT serves as the crypto market's essential liquidity infrastructure rather than an investment asset. Hold USDT when actively trading cryptocurrencies, moving funds between exchanges, or seeking temporary dollar exposure in emerging markets. The stablecoin maintains dominance with $185.24 billion market cap and approximately 62% of the stablecoin market as of February 2026, though market share is declining as USDC grew 73% in 2025 versus USDT's 36% growth and capital flows to regulated alternatives. Tether demonstrated exceptional 2025 performance per Q4 attestation published January 30, 2026, generating $10 billion in net profit with $6.3 billion in surplus reserves, $141 billion in U.S. Treasury holdings (one of the largest holders globally), 96,000+ BTC ($8.4 billion), and approximately 140 tons of gold ($24 billion making it one of the largest non-governmental gold holders). The company launched USAT in January 2026 through Anchorage Digital Bank for GENIUS Act compliance while maintaining USDT globally. However, minimize exposure duration and avoid treating USDT as a long-term store of value due to ongoing transparency concerns with no Big Four audit, S&P's November 2025 Weak stability rating, $32.8 billion in volatile assets (17.7% of reserves) far exceeding the $6.3B reserve buffer, complete MiCA non-compliance causing permanent EU exchange delistings since March 2025, and November 2026 GENIUS Act deadline requiring 100% liquid reserves and full audits.
$0.9978
