The crypto price has seen ups and downs since the Wednesday comments from the US Federal Reserve. However, market players may need to watch the remarkable increase in USDT supply. That can be obvious with how the cryptocurrency markets have corrected plus the many liquidations. Multiple investors liquidated their crypto positions and now hold massive quantities of USDT.
According to an on-chain data analyst Santiment, Tether stablecoin on exchanges has hit a six-month high. The data provider noted that the Tether coins ratio on crypto exchanges climbed to 22.5%, the highest level in more than six months. This supply amounts to $8.99 billion, showing an increasing buying power level, accumulating on trading exchanges.
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Tether Issues $4B New USDT per Month
Stablecoin Tether remained aggressive in USDT issuance in 2021. Within the past month, it had issued USDT worth $4 billion. With such cases, Tether’s market capitalization exceeded $76.6 billion recently.
USDT supply to the cryptocurrency market has seen a tremendous increase in 2021. According to the YTD chart, Tether (USDT) supply increased four times, from $20B to around $80B. Meanwhile, several reports said that Tether had printed USDT from light air, failing to back them 1:1 with the United States dollar. Nevertheless, Tether denied such a claim, saying it has the necessary reserves in place.
Meanwhile, Tether has seen impressive adoption, attracting even political parties. For example, Myanmar’s shadow government declared Tether as an official currency. Tether responded, stating it was a bold move.
The Myanmar parallel government will utilize Tether in funding its projects and operation. The overthrown leaders chose Tether users can exchange it on P2P platforms with ease. Furthermore, it ensures high user privacy. Moreover, stablecoin has been a gateway to the crypto space for newbie traders.
Though the speculations, Tether seems strong in the financial space. The increased USDT tokens on exchanges show that many individuals hold crypto. The uptick in exchange supply by USDT comes as the crypto market battles bearishness.
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