Tether's USDT Surges with 1.6M New Holders Amid Stablecoin Market Cooling

Tether's stablecoin USDT saw significant growth last week, adding over 1.6 million new holders and nearly tripling the number of new holders for USDC. This surge in adoption comes despite a cooling market for stablecoins.

The market capitalization of USDT remains around $183 billion, more than two-and-a-half times larger than that of USDC's $72-74 billion. USDT's growth is driven by demand from emerging markets seeking dollar liquidity, whereas USDC is favored in regulated markets and by institutional users due to its focus on compliance.

Tether's strong financials also contribute to investor confidence, with excess reserves totaling $4.1 billion and a profit of $1.5 billion in the second quarter.