Tether, one of the leading Stablecoins backed by US Dollars, minted over $540 million dollars after the demand soared in the last three days, as per the data of Glassnode (on-chain data provider). As the price of Bitcoin spiked up to 8 months high at $10,270 (BTC rally ) on Tuesday, inflow for the Tether (USDT) has soared.
Tether (USDT) is performing tremendously and breaking the records in the crypto marketplace since last month. Recently, it has left behind Ripple (XRP) to become the third-largest cryptocurrency in terms of market capitalisation while crossing the $10 billion benchmark in the month of July. Tether is contributing the majority of the percentage of the crypto market of Stablecoins, rising above $12 billion.
USDT has experienced the highest inflow in March of 2020 when BTC was crashing. But, presently, Tether (USDT) is fueling up with the BTC rally.
USDT - 24h volume (BTC). Source: CryptoCompare
One of the reports by Messari, a market and on-chain analytics firm, advocated that USDT has the potential to surpass the Bitcoin (most dominant) in terms of volume of daily transaction, considering the transaction across various layers like Tron, Omni, etc. inter-exchange settlements and decentralized financial system are the major factors which are responsible for the growth of USDT and BTC Rally.
Bitcoin vs Tether daily transaction value. Source: Messari
As the exchanges are experiencing the heavy inflow and especially the demand of USDT is pointing towards bullish markets for Bitcoin. The increasing market capitalisation for USDT indirectly signifies the growth and adoption of the cryptocurrency. But, the demand of USDT may also portray that investors are buying USDT based derivatives for long and short of Bitcoin, which is not the signal of positive growth. Jame Li, an analyst at CryptoCompare advocated that considering the historical trends in the graph “only” cannot be advocated as the bullish trend in the crypto market. We should carefully analyse the BTC Rally before concluding the upcoming trend of the market.