$13 Million Worth of Tether (USDT) Transferred From Tether Treasury To Exchanges

A transaction with a total of $13 million USDT was transferred from Tether’s treasury to two cryptocurrency exchanges: Huobi and Kraken. This was one of the most massive transactions of the currency so far.

Some people linked the transaction to more demand for USDT as the Chinese government may ban cryptocurrency mining. The situation may happen if the government decides that mining is an unwanted economic activity, as cryptocurrencies are already banned in the country.

Because of this, Chinese miners may be converting their fiat to USDT in order to avoid sanctions from the government. Huobi, a Chinese exchange, received almost $8 million USDT. After that, almost $5 million USD were transferred to Kraken as well.

Stablecoins Are Surging In Volume

According to recent reports, stablecoins seem to be surging in volume. USDT increased its own circulation in over 200 million while Paxos increased it by 5 million and USD Coin (USDC) in around 7 million USD.

This has led some people to speculate on the reasons that may be behind the increase. The most obvious ones are that the increase in the stablecoin volume is largely connected to the recent BTC price spike.

Altcoins generally see greens when Bitcoin is going up and, as the price of stablecoins does not go up, increasing their volume seem to be an aspect of growth in this specific niche of the industry.

Other rumors point out that retail traders may be cashing out now and that they are using stablecoins to hold their money while abandoning Bitcoin as they expect prices to go down again after this small bull run that we had so far.

At the same time, rumors continue that Tether does not have its equivalent in USD. Tether is often criticized by its lack of transparency because the company keeps all the banking details closed behind shut doors, a practice that is seen as less than optimal in the industry.

It is early to know whether the effect will last and stablecoins will keep increasing in volume, so let’s watch the market and figure out how it is going to move.

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