USDT volume on exchanges up 20% in 3 months
The share of Tether (USDT) on exchanges has increased by 20% in the last three months, according to the report. Santiment data.
📈 Ratio #tether It went from 19.7% on May 9th to a whopping 42.0% three months later. This can be seen as a signal that traders have profited from the price rebound, as well as an indication of purchasing power at its highest level in two years. https://t.co/Xmscnu5NOb pic.twitter.com/UFuYAkrWlO
— Santiment (@santimentfeed) August 10, 2022
The market intelligence platform tweeted that the ratio had gone from 19.7% on May 9th to 42% as of August 10th. This is the first time since April 2020 that USDT supply on exchanges has exceeded 42%.
According to Santiment, this is a sign of two years of high purchasing power and also shows that traders have profited as the cryptocurrency market has rebounded.
Over the past three months, the supply of USDT has decreased as investors redeemed their tokens during the bear market. The stablecoin issuer has revealed that he has redeemed as much as $14 billion in two weeks.
Meanwhile, Tether resumed minting on July 29 and has since added billions of dollars to its market cap. Many in the cryptocurrency community consider the increase in stablecoin supply to be a bullish signal.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 1,000,000,000 #USDT (1,001,883,610 USD) Issued in Tether Treasuryhttps://t.co/J7058h3uuw
— Whale Alert (@whale_alert) August 3, 2022
Binance CEO Changpeng Zhao said: recent tweets “Three of the top 10[cryptocurrencies]are stablecoins, which means many ‘fiat currencies’ are on the sidelines and ready to reenter. If people want to get out of crypto, most people will not hold stablecoins. “
Three of the top 10 are stablecoins.
Most people don’t hold stablecoins if they want to get out of crypto. https://t.co/QONyq1894U
— CZ🔶 Binance (@cz_binance) July 31, 2022
A study by CryptoSlate reveals that over $40 billion worth of stablecoin “dry powder” awaits the cryptocurrency market bystanders.
However, Blockware analyst Will Clemente said: have different opinionsIn his view, there should be fewer stablecoins on the market as oversupply and lack of buyers could shrink the cryptocurrency market.
IMO this is the most compelling chart in crypto.
Market participants will have to chase the rally higher when large amounts of stablecoins are on the sidelines compared to crypto’s mkt cap. When many stables are deployed but there are no people left to buy, the market runs out of new buyers. pic.twitter.com/PUhVx6Gakw
— Will Clemente (@WClementeIII) July 19, 2022
He believes that the demand for crypto assets will increase as the amount of stablecoins in circulation decreases.
While there may be somewhat different opinions on what a massive supply of stablecoins means for the cryptocurrency market, Ethereum (ETH) users will at least have nothing to worry about after the merger.
The two largest stablecoin issuers have confirmed that they will only support Ethereum PoS after the merger to avoid disruption to their communities.