According to data published by CryptoSlate, Tether’s USDT supply reached 74 billion for the first time since May 2022.
USDT’s Circulating Supply Rises
In the past few days, due to the Silicon Valley Bank crisis and the inability of stablecoins like USDC and DAI to maintain their stable value, investors preferred USDT as a safe haven. For this reason, the supply of Tether’s USDT increased by approximately 5 billion. As a result, the supply of USDT has increased by 10% this year, while the supply of USDC, BUSD, and DAI has decreased. USDT’s market dominance reached 56.4%, its highest point since July 2021.
USDT Seeing More Whale Trades
According to blockchain analytics firm Santiment, Tether has seen more whale transactions recently, with the stablecoin witnessing eight $1 billion transactions in 2022 alone. Half of these transactions took place within ten days of the collapse of banks associated with the crypto industry (e.g., Silicon Valley Bank).
The Market is on the Tether Side
An examination of Curve 3pool’s dashboard confirms Santiment’s data.
According to the dashboard data, USDC and DAI make up more than 90% of the pool, while USDT only accounts for 8.61%. This means that crypto traders favor USDT over other stablecoins.
**The imbalanced pool is a tool that shows crypto traders’ stablecoin preferences during market volatility.
FUDs About Tether Continue
In contrast to investor confidence in Tether, concerns about opaque reserves persist. In 2021, the stablecoin issuer settled with New York authorities over its dollar reserves backing. Tether also saw a rise in the number of hedge funds betting against it after Terra’s algorithmic stablecoin, UST collapsed.
At the time, tether honored nearly $10 billion worth of redemptions in two weeks as investors feared that the stablecoin might collapse. Additionally, with the collapse of several crypto firms, there were concerns in the market as to whether Tether was exposed to any of them.
Tether CTO Paolo Ardoino, who made statements due to concerns, said that the stablecoin issuer was not exposed to the troubled banks associated with the crypto industry:
“outdated, inaccurate, and misleading coverage and allegations.”
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