• Tether USDT’s supply has grown by 10% in the current year, reaching a 10-month high of $74B.
• USDT’s market dominance has reached 56.4%, its highest point since July 2021.
• Whale transactions have increased significantly, with 8 $1 billion transfers occurring in the last 10 days alone.
Tether Supply Reaches All-Time High
Tether’s USDT supply recently reached 74 billion for the first time since May 2022, according to CryptoSlate’s data. Over the past 30 days, Tether’s supply added roughly 5 billion as its stablecoin rivals like Binance USD (BUSD) and USD Coin (USDC) faced regulatory scrutiny and banking issues. This resulted in investors ditching these embattled stablecoins for the relative safety of USDT.
Increased Market Dominance
As a result of this increase in supply, USDT’s market dominance has reached 56.4% — its highest point since July 2021. Meanwhile, USDC, BUSD, and DAI supplies all shrank as investors sought refuge in the more trustable and reliable Tether token.
Whale Transactions
Blockchain analytical firm Santiment reported that Tether has recently seen more whale transactions over the past year — half of which have occured in the last 10 days as several whales moved their holdings out of crypto exchanges following difficulties with crypto-friendly banks. Santiment also noted that Tether’s supply on exchanges dropped by 28.9% to a 10-month low due to investor confidence in it being higher than other stablecoins like USDC or DAI.
Curve 3pool Dashboard
Curve 3pool’s dashboard revealed an imbalanced pool heavily favoring USDC and DAI while only making up 8.61% of liquidity from USDT — showing crypto investors preference for holding it during times of volatility instead of relying on other stablecoins available on the platform.
FUD Still Surrounds Tether
Despite recent faith shown by crypto investors towards Tether, concern still remains over its opaque reserves and settlements with New York authorities over dollar reserves backing it up — followed by an influx of hedge funds betting against it after Terra’s algorithmic stablecoin UST collapsed earlier this year