When Tether Became the Unlikely King of Crypto-Lending: A Tale of Surprising Fortunes

Ah, Tether! The stablecoin that has waltzed its way into the limelight, now crowned as the sovereign of the crypto-lending realm, with Galaxy and Ledn trailing behind like loyal courtiers. This sector, once a grand castle of powerhouses like Blockfi, Celsius, and Genesis, has seen a rather dramatic reshuffling of its aristocracy.

In the grand theatre of crypto-lending, where liquidity is the currency of the realm, Tether has emerged as the unexpected hero. Once merely a humble stablecoin, it now commands a staggering 70% of the market share by the fourth quarter of 2024. According to the illustrious scribes at Galaxy Digital, Tether has become the proverbial lifebuoy amidst a tempest of liquidity woes. 🛟

Alex Thorn, the sage of research at Galaxy Digital, proclaimed:

They began their ascent during the market’s darkest hour, a veritable beacon of liquidity in a sea of uncertainty. Clearly, they are a titan among mere mortals.

While some skeptics might view this newfound prominence as a gamble worthy of a Shakespearean tragedy, Tether assures us that all its loans are as secure as a royal treasury. “As detailed in our latest quarterly missive, all loans are lavishly overcollateralized (in Bitcoin, no less) and managed with the utmost prudence,” the firm declared with a flourish.

Tether insists that its lending practices are as sound as a bell, even if the specifics of these loans remain shrouded in delightful mystery. “While we do not unveil the intricate tapestry of each agreement, rest assured that all lending activities are designed to uphold the full and liquid backing of USDT at all times. Tether has never defaulted on a loan,” the firm assured Bloomberg, with a wink. 😉

Despite its continued relevance, the crypto-lending market has shrunk dramatically, much like the ego of a fallen monarch, after the demise of notable players such as Celsius, Blockfi, and Genesis. Once a robust kingdom valued at $64.4 billion in Q4 2021, the market now finds itself halved, a shadow of its former glory.

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2025-04-15 14:57