Tether's USDT stablecoin has recorded a remarkable surge, accumulating an additional $20 billion in market capitalisation in 2023.

Beginning the year with a market cap of around $US66 billion, Tether consistently set new records and surpassed the $US80 billion milestone in April.

In contrast, the USDC stablecoin struggled to achieve substantial growth this year. After reaching $US55 billion in June 2022, USDC's market cap faced a decline, losing $US20 billion in value, marking a significant 45% decrease.

The growth of USDT can be attributed to the mounting institutional enthusiasm for Bitcoin, fueled by anticipation of a potential approval of a Bitcoin ETF.

Throughout the year, there has been a consistent push to secure approval for a spot Bitcoin ETF. Companies from the digital asset industry to traditional finance are actively pursuing this offering, with the market eagerly awaiting potential approval from the US Securities and Exchange Commission (SEC).

Additionally, emerging markets have contributed to the stablecoin's success, as it establishes itself as the leading digital dollar. USDT has become the dominant force, representing 80% of all crypto transactions in Brazil, a trend mirrored in numerous other countries.

In these regions, where national currencies falter against the dollar, Tether is increasingly perceived as the most reliable asset.