Sylvia To is the head of token partnerships and research at Bullish and the author of 'Bullish Insights.'
The market cap for stablecoins has grown considerably in the past six months, increasing from $122 billion in October 2023 to $157 billion in April 2024. Among stablecoin providers, Tether has captured a significant market share, exceeding $100 billion and accounting for over 70% dominance in the stablecoin market.
Building on this momentum, Tether's Q1 2024 attestation report disclosed a record $4.52 billion profit from U.S. Treasury holdings, generating $1 billion in net operating profits. The number of active Tether addresses as of April 28 rose to 5.6 million.Index. This index, repurposed to measure the market concentration of Tether wallets, calculates the shares of the total supply held by different addresses by summing the squares of each address's balance in the network.
The recent introduction of USDT on the TON network may decrease its Herfindahl score and achieve a more evenly distributed supply. Telegram, which claims 900 million monthly active users, announced in April that USDT will be natively supported on TON. This move could influence the distribution of Tether wallets significantly.When examining the top three blockchain platforms and their stablecoin usage, TRON transactions are heavily dominated by USDT, with a dominance of 98.2%.
Most of these countries are key players in the global remittance market. India ranks as one of the top global receivers, while Russia sees significant inflows from its diaspora in Europe and former Soviet states. Indonesia benefits from remittances sent by its migrant workers in Malaysia and the Middle East. Brazil, on the other hand, is known more for sending remittances through its emigrants in the US, Japan, and Europe.
Tether's integration on the TON network, combined with its significant market share and the potential for a more distributed wallet system, could support USDT's expansion among Telegram's user base, boosting its usage in major remittance markets.in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence.
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