The supply of Tether (USDT) on the exchanges reaches its highest level in 6 months…what does this mean?
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Answer The supply of Tether (USDT) on the exchanges reaches its highest level in 6 months…what does this mean?
The digital stablecoin Tether (USDT) is commonly used to hedge cryptocurrency price fluctuations, protect capital via stop loss and other mechanisms.
Recently, after the Federal Reserve’s suspension on Wednesday, December 15th, the supply of the digital stablecoin Tether (USDT) has increased tremendously.
what does that mean?
It can be said to be normal considering the way the crypto market correction and liquidations have been done.
A large number of traders have liquidated their positions and are currently holding USDT in large amounts.
According to Santiment, the number of USDT in trading platforms touched its highest level in 6 months.
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indicated “Santiment” on Twitter by saying:
The share of tether stablecoins on exchanges increased to 22.5%, the highest level in more than 6 months.
This amount of supply turns out to be $8.99 billion, which indicates the high level of purchasing power accumulated in the trading platforms.
Tether issues $4 billion in new dollars in one month:
Tether has been very voracious in issuing USDT this year.
Over the past month, Tether issued an additional $4 billion in USDT to recently surpass its market capitalization of $76.5 billion.
The supply of USDT in the crypto market has increased significantly this year (in 2021).
If we look at the annual chart, the USDT supply has quadrupled from $20 billion to nearly $80 billion.
There have been multiple reports that Tether is printing USDT out of thin air with no actual backing.
But Tether denied all these allegations, saying it had all its reserves in place.
On its website, it indicated the following statement:
100% of USDT is backed by reserves, which include traditional currency (paper dollars) and other assets.
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Tether has even been adopted by some political parties.
Recently, the parallel government of Myanmar announced Tether USDT as its official currency.
Tether has commented on this, calling it a bold move.
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