The issuer of stablecoin Tether today added another half a billion USDT to its reserves, according to data from the Whale Alert service.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 500,000,000 #USDT (496,803,144 USD) minted at Tether Treasury
Tx: https://t.co/UpyjQiYKGc
— Whale Alert (@whale_alert) January 29, 2021
Earlier this week, Tether officially announced that USDT’s market cap had surpassed $ 25 billion, with $ 5 billion added to it in just one month.
“This is a fantastic achievement – further confirmation that Tether is holding the top spot as the most liquid, stable and most trusted stablecoin,” the company said.
According to Paolo Ardoino, CTO of Tether, the company replenishes its reserves when it expects an increase in demand for stablecoin from customers. At the current stage, demand may be due to a sharp resumption of growth in the price of bitcoin – over the past day it has risen by 20% and exceeded $ 37,000. The operation to issue USDT, however, does not mean that these tokens immediately hit the market.
CryptoQuant data confirms an increase in stablecoin inflows to exchanges. According to her, on January 28, a new absolute maximum above $ 4.7 billion was set for the volume of stablecoins in exchange wallets.
The total capitalization of all stablecoins is now over $ 35 billion. USDT trading volumes exceed $ 130 billion, making it the most traded asset in the cryptocurrency market. Stablecoin inflows are often viewed as a short-term catalyst for bitcoin’s appreciation, as new capital flows into the market with them.
Tether, however, has long-standing doubts among traders about its collateral. Bank Deltec, where Tether is serviced, recently said USDT is oversupplied.
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