Tether’s Circulating Supply Hits 10-Month High of $74B
17. März 2023
• Tether’s USDT supply has reached an all-time high of 74 billion.
• The stablecoin has seen more whale transactions recently and its supply on exchanges dropped by 28.9%.
• Crypto investors are preferring USDT over other stablecoins like USDC, BUSD and DAI due to market volatility and regulatory issues.
Tether USDT Supply Reaches Record High
Tether’s USDT supply has reached an all-time high of 74 billion, according to CryptoSlate’s data. Over the past 30 days, Tether’s supply added roughly 5 billion as its stablecoin rivals like Binance USD (BUSD) and USD Coin (USDC) faced regulatory scrutiny and banking issues. This resulted in investors ditching these embattled stablecoins for the relative safety of USDT.
More Whale Transactions on Tether
Blockchain analytical firm Santiment reported that Tether has recently seen more whale transactions. According to Santiment, the stablecoin witnessed eight $1 billion transactions over the past year — half of these transactions occured in the last 10 days as several whales moved their USDT holdings out of crypto exchanges following the collapse of crypto-friendly banks. Santiment added that Tether’s supply on exchanges dropped by 28.9% to a 10-month low as investors showed more trust in it following the struggles of USDC.
Crypto Investors Fleeing To Tether Stability
Curve 3pool’s dashboard corroborates Santiment’s data as its liquidity pool is heavily imbalanced. According to the dashboard, USDC and DAI account for over 90% of the pool, while USDT makes up just 8.61%. This means that crypto investors prefer holding USDT as against the other stablecoins during market volatility because it is supposed to hold equal balances of all three stablecoins.
FUD Still Surrounds Tether
Despite crypto investors‘ recent faith in the stablecoin, concern remains over its opaque reserves. In 2021, the stablecoin issuer settled with New York authorities over its dollar reserves backing and saw a rise in hedge funds betting against it after Terra’s algorithmic stablecoin, UST collapsed.
In conclusion, despite some FUD surrounding Tether’s reserves status, crypto investors have been turning towards this reliable store-of-value asset during times of market volatility caused by regulatory scrutiny or banking issues with rival coins such as USDC or BUSD – resulting in record highs for both overall circulation amount and market dominance level since May 2022..