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## TL; DR

Analysts believe that <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a> will generate a higher profit level than BlackRock.

Tether is performing better than other stablecoins which include USDC.

You can <a href="/how-to-buy/tether-usdt" target="_blank" class="blog_inner_link">buy Tether</a> USDT using credit cards, wire transfer and P2P trading at Gate.io centralized exchange. 

## Introduction

There are a few cryptocurrencies that were not affected much by the crypto winter that stretched throughout 2022 and spilled into 2023. Even <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, the number one ranked cryptocurrency and ETH, the most adopted cryptocurrency, were heavily impacted by the 2022’s crypto meltdown. However, several stablecoins fared better than most cryptocurrencies during that period. 

Tether USDT is one of the stablecoins that weathered the effects of last year’s harsh crypto environment. Already, in the first quarter of 2023 it generated profit and there are clear signs that it may also gain much during the second quarter. 
This article discusses why [Tether stablecoin](https://www.gate.io/price/tether-usdt/uah "Tether stablecoin") will outperform most stablecoins in 2023 and its high possibility to generate more profit [than BlackRock](https://www.gate.io/uk/bitwiki/detail/809 "than BlackRock").

## Tether’s Profit to Exceed that of BlackRock in 2023

Tether USDT is expected to achieve remarkable profit in 2023, potentially surpassing BlackRock, as analysts project a staggering $6 billion in earnings. Specifically, Tether is likely to outpace BlackRock’s’ forecasted net income of $5.5 billion. 

Already, the stablecoin generated a net profit of $1.48 billion within the first quarter of 2023 after attaining an all-time high (ATH) of $2.44 billion in reserve surplus. And Tether’s estimated $6 billion exceeds BlackRock’s forecasted net income of $5.5 billion 

Read also: [BlackRock Launches Blockchain-related ETF for European Markets](https://www.gate.io/blog_detail/1643/blackrock-launches-blockchain-related-etf-for-european-markets. "BlackRock Launches Blockchain-related ETF for European Markets")

![](https://gimg2.gateimg.com/image/article/1689555248unnamed (5).png)
Tether USDT - Coinstelegram

According to Tether, USDT’s market capitalization has increased to $83,2 billion which is almost equivalent to the peak it attained in 2022. This current great run follows its depressed performance that started after the implosion of <a href="/price/terra-luna" target="_blank" class="blog_inner_link">Terra</a> USD (UST). Also, a few weeks ago, it lost its peg against the United States dollar. 

Analysts believe that [Tether USDT](https://www.gate.io/price/tether-usdt "Tether USDT") may attain $6.6 billion in 2023 because it is backed by high-earning U.S. treasuries. Based on its current performance Tether is likely to outperform crypto giant firms like Coinbase, the crypto exchange that has already incurred a loss of $564 million in 2023. 

Additionally, during the first quarter it generated more profit than other large FinTech companies like PayPal, Netflix, Cash App, Starbucks and several other S&P 500 corporations
Statistically, Tether USDT’s market cap has increased by 27.5% to its current value of $83.2 billion which represents 7% of the total crypto market capitalization. This increase in Tether’s market cap comes at a time when several stablecoin issuers including Circle are grappling under the United States’ regulatory challenges. 

Tether USDT’s high performance is remarkable in a number of ways. By comparison, Tether is performing better than BlackRock, the giant asset management firm that has been in business for the last 30 years. On the contrary, Tether has been in existence for about one decade only. Again, most of Tether’s competitors are more than 40% below their previous all-time high market caps. 

Tether has attained other positive milestones during 2023. It has added new types of reserves such as Bitcoin and gold, a sign of commitment to the industry. For example, 4% of its total reserves are precious metals that include gold while 1.8% is Bitcoin. However, 85% of its reserves consist of cash, cash equivalents as well as other short-term deposits.

## Reasons for Tether USDT’s Recent Growth

The increase in Tether USDT’s market capitalization is attributed to its recent minting on the Tron blockchain. This is because USDT that exists on the Tron blockchain (TRC-20) is in high demand around the globe including in mainland China. This is due to its low transaction charges, high processing speed and less incidences of depegging. However, what makes USDT more popular is its existence on 13 blockchains which include <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>, <a href="/price/eos-eos" target="_blank" class="blog_inner_link">EOS</a>, <a href="/price/algorand-algo" target="_blank" class="blog_inner_link">Algorand</a>, Liquid Network and Omni.

The fact that USDT maintains a fairly stable value against the United States dollar makes it a favorite of many unbanked people around the world, especially in emerging markets. More importantly, the <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether price</a> has been stable when faced by market volatility. Therefore, many crypto customers around the world trust it. 

To this effect, Paolo Ardoino, Tether’s CTO said, “Between our battle-tested resilience in the face of market volatility and our industry-leading transparency practices, Tether has proven that it can be trusted, and customers are responding in kind. We are eager to continue maintaining our laser focus on emerging markets and will not waver in our efforts to expand access to financial freedom globally.” 

## As Tether Coin Gains Circle (USDC) LossesAs Tether Coin Gains Circle (USDC) Losses

Although USDT crypto is performing very well on the market, its rival stablecoin USDC is losing ground. For example, during 2023 alone the market capitalization of USDC has decreased by 36% or $16 billion. It has a current market capitalization of $28.5 billion and holds about 22% of the market. 

There are several factors that have led to the decline in Tether coin’s market share and capitalization. Mainly, it has been strongly affected by the crypto crackdown in the United States. Also, its circulating supply has decreased as a result of the loss it incurred following the closure of Silicon Valley Bank. 

Read also: [Tether Blacklist Multichain’s Hacked ETH Address](https://www.gate.io/blog_detail/615 "Tether Blacklist Multichain’s Hacked ETH Address")

## Impact of Tether USDT Circulating Supply on the Total Crypto Market Capitalization

Considering its current market capitalization, the Tether Coin represents 7.25% of the total market capitalization of about $1.15 trillion. Bitcoin and [ETH](https://www.gate.io/trade/ETH_USDT "ETH") are the other cryptocurrencies that contribute much to the total cryptocurrency market capitalization. Similarly, USDT contributes about 64% of the total stablecoin worth around $129 billion. 

## How to acquire Tether USDT?

You can [buy Tether USDT](https://www.gate.io/how-to-buy/tether-usdt "buy Tether USDT") on secure cryptocurrency exchanges like Gate.io. In fact, at Gate.io you can purchase it using bank transfer, credit cards or P2P trading. Alternatively, you can convert any crypto holding in your Gate.io account to <a href="/price/tether-usdt" target="_blank" class="blog_inner_link">Tether crypto</a>.

## Conclusion

A recent report shows that Tether’s profit is likely to surpass that of BlackRock which is expected to generate a net income of $5.5 billion in 2023. On the other hand, Tether USD, the third largest cryptocurrency based on market capitalization, outperforms the other stablecoins by large margins. Lastly, Gate.io is a secure and reliable crypto exchange to buy USDT. 



<div class="blog-details-info">
<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>


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ether USDT’s profit is likely to exceed that of BlackRock as a result of a rise in its demand since it exists on 13 blockchains that include Tron, Ethereum, EOS, Algorand, Liquid Network and Omni.

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Tether (USDT) Poised to Outpace BlackRock’s Profits in 2023, Say Analysts