Tether (USDT) Stablecoin Continues to Dominate Bitcoin (BTC) Trading Activity
It has been recently assumed that Bitcoin [BTC] might be passing by because of the stablecoin, USDT’s positive performance. As reported by Crypto Vest,
“81% of all BTC deals happen against the top stablecoin (https://cryptovest.com/news/bitcoin-btc-now-relies-on-tether-usdt-for-most-activity/).”
The concern that has since been expressed is that BTC prices could potentially deviate from the crypto market. This is a problem because this implies that the inflow of cash is gradually reducing. Moreover, USDT is now available on several crypto exchanges, which only seems to have contributed to its growth.
A token performance tracking website called Stablecoinswar has been quoted sharing that the “velocity of money” for USDT is 415% – meaning that the token is exchanging hands at four times the average rate.
Getting back to the fact that new money seems to be nowhere in sight, Crypto Vest has informed that many believe some manipulation might exist within BTC’s market. This is coming from the fact that USDT is dominating in both BTC and alternative coins market.
Another site, devoted primarily to assessing USDT activity, called Untether was also referenced in the piece. As per their findings,
“USDT is only marginally below its peg dollar.”
It looks like BTC and its likes will have to take a seat, while stablecoins take on the spotlight, but whether allowing said success to continue is beneficial or not is still of a big question. For the most part, it seems like the crypto market is under heat with investors questioning its reality and what’s to come.
Do you think a BTC-based exchange-traded fund (ETF) could help the crypto market’s overall recovery, let alone allow BTC to pick up its value without relying heavily on USDT? If so, let us know your reasoning in the comments below!