Tether Sees Surge In Value Following Trump’s Election Victory

According to DLNews, the stablecoin Tether has experienced a significant increase in value following the election of former President Donald Trump. Since the polls closed on November 6, Tether's total value has risen by nearly 6%, reaching over $127 billion, as reported by DefiLlama. This nine-day surge marks Tether's largest growth since March 2023. In comparison, Tether's closest competitor, USDC, has seen a 4% increase in value, nearing $37 billion. The rise in Tether's value is part of a broader trend in the cryptocurrency market, which has seen a resurgence following Trump's victory. Bitcoin, for instance, has surged by almost 30%, now approaching $90,000. The overall crypto market has reached an unprecedented high of over $3.1 trillion, with even memecoins experiencing significant gains. Tether's growth also reflects the influence of Howard Lutnick, CEO of Cantor Fitzgerald, a financial services firm based in New York. Cantor Fitzgerald manages US Treasury bonds for Tether, and Lutnick has been a vocal supporter of the stablecoin, despite ongoing scrutiny over Tether's refusal to release a full audit of its reserves. Lutnick, a major fundraiser for Trump and co-chair of his transition team, is reportedly on the shortlist to become Trump's nominee for Secretary of the Treasury. The Wall Street Journal notes that a Polymarket prediction market gives Lutnick a 26% chance of securing the nomination. However, Lutnick's potential appointment could present a conflict of interest, as the Treasury is currently conducting a criminal investigation into Tether. This development adds a layer of complexity to Lutnick's possible future role in the Trump administration.