IntoTheBlock Tethers 113B Dominance Prevails Following Collapse of SVB

Tether has achieved a circulating supply of $113.13 billion as of July, marking a significant milestone since the collapse of the Silicon Valley Bank (SVB) in March 2023.
According to data from IntoTheBlock (ITB), the collapse of SVB in 2023 was a crucial turning point for the stablecoin market, as traditional finance (TradFi) institutions turned to USDT for stability.
Vincent Maliepaard, the marketing director at ITB, explained to Cointelegraph that USDT’s accessibility and liquidity are the main reasons for its dominance as the preferred stablecoin for traders and investors.
The overall market capitalization of stablecoins has continued to grow since the collapse of SVB, reaching approximately $150 billion in July 2024, according to ITB data.
The stablecoin market is gaining global exposure through regulatory initiatives such as the new guidelines for stablecoin issuers from the Swiss Financial Market Supervisory Authority (FINMA).
Increased exposure has led to trust and increased liquidity in the market, with stablecoins like DAI, FDUSD, and USDM witnessing transactions exceeding $100,000, according to ITB data.
In July, Circle USD (USDC) made regulatory progress by becoming the first global stablecoin issuer to comply with the new European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. However, despite this achievement and its $33.71 billion market capitalization, USDC still lags significantly behind USDT, which has a market cap of $113.13 billion.
Maliepaard explained that USDT’s success can be attributed to its role beyond decentralized finance (DeFi) and trading.
A report by Elliptic Research on July 10 revealed that a Cambodian conglomerate group, Huione Group, was involved in facilitating online scams in Southeast Asia. The report showed transactions exceeding $11 billion linked to money laundering and cyber scams, primarily through the use of USDT. However, the use of USDT made it easier to track illicit funds through the blockchain’s public digital ledger compared to traditional fiat flows.