According to CryptoSlate data, Tether’s USDT supply has reached $74 billion for the first time since May 2022.
Over the past 30 days, Tether’s supply has increased by about 5 billion as stablecoin rivals such as Binance USD (BUSD) and USD Coin (USDC) faced regulatory scrutiny and banking problems. As a result, investors have abandoned these troubled stablecoins due to the relative safety of USDT.
For context, USDT supply increased by 10% this year while USDC, BUSD, and DAI supply contracted.
Meanwhile, USDT’s market dominance has reached 56.4%
USDT sees more whale trades
Blockchain analytics firm Santiment reports a recent uptick in whale trades on Tether.
Santiment Says Stablecoins Have Witnessed 8 Billion Dollar Transactions Over the Past Year
Santiment added that the supply of Tether on exchanges fell 28.9% to its lowest level in 10 months, as investors increased their confidence in Tether following the USDC’s struggles.
Crypto Investors Flee to USDT
Curve 3 Pools Dashboard The liquidity pool is significantly imbalanced, corroborating Santiment’s data.
According to the dashboard, USDC and DAI make up over 90% of the pool, while USDT makes up just 8.61%. This means that a cryptocurrency investor prefers to hold his USDT over other stablecoins.
The imbalanced pool is an indication of crypto investor stablecoin preferences during market volatility, as all three stablecoins are assumed to be equally balanced.
FUD still surrounds the tether
Despite crypto investors’ recent confidence in stablecoins, concerns over their opaque reserves remain.
In 2021, the stablecoin issuer settled with New York authorities over the backing of its dollar reserves. It also saw an increase in the number of hedge funds betting on Tether after his UST, Terra’s algorithmic stablecoin, collapsed.
At the time, USDT redeemed about $10 billion in two weeks as investors feared the collapse of the stablecoin.
On top of that, the collapse of several crypto companies has also raised the question of whether Tether is exposed to any of them.
However, Tether CTO Paolo Ardoino claims the stablecoin issuer is not affiliated with any of these companies, including the distressed crypto-friendly bank. recent statement of Added being the target of “outdated, inaccurate and misleading reporting and claims”;
