Tether supply starts to increase after three-month decline

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The world’s largest stablecoin, Tether (USDT) has expanded its circulating supply after nearly three months of reductions, in what could be a sign that the crypto markets are slowly recovering.

The first mint in nearly three months took place on July 29, and there have been three more, with the most recent on August 2, according to CoinMarketCap. The USDT injections were small, however, raising Tether’s market cap by just 0.7% or just under $500 million.

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USDT market cap 7D – Coinmarketcap.com

According to the Tether transparency a report, there are now 66.3 billion USDT in circulation. This gives the stablecoin a total market share of around 43%.

Tether supply reached an all-time high in early May when it topped 83 billion USDT. The collapse of the Terra ecosystem, resulting crypto contagion and large-scale redemptions forced the company to reduce the circulating supply, which fell 21% to a minimum of 65.8 billion at the end of July.

This enabled rival company Circle to increase the market share of its stablecoin USDC, which now commands a 36% slice with a $54.5 billion market cap. As reported by Cointelegraph last month, USDC volume on Ethereum actually overthrew Tether for a period as the number two stablecoin continues to catch up.

Over the weekend, Binance CEO Changpeng Zhao commented on the amount of stablecoins ready to re-enter the markets, stating:

“3 of the top 10 are stablecoins, which means there is a lot of “fiat” sitting on the sidelines, ready to get back in. If people wanted to get out of crypto, most won’t hold stablecoins.”

Stablecoins currently represent 13.6% of the entire crypto market capitalization, which is close to its all-time high levels.

Related: Circle’s USDC on track to topple Tether USDT as the top stablecoin in 2022

A cost of living crisis caused by rising global inflation may have put the brakes on crypto investing and speculation for retail traders. However, those who live in countries with extreme inflation levels, such as Argentina, have held USD-linked stablecoins as a hedge against their own currencies.

Tether acknowledged the benefits of holding stablecoins, stating that USDT “allows Argentines to access a market that is truly global and frees them from local black markets,” adding that it also “allows them to hold Tether in ways that cannot be confiscated of the government”. , unlike local bank accounts.”