Tether (USDT) Transfers to Exchanges Skyrockets to a Record Level

Demand for USD-pegged digital currencies has fueled a considerable increase in new token issuance. Genesis Capital Head of Institutional Sales, Dan Torrey said,

“The single biggest shift over the past 16 months has been the demand for cash and stablecoins. We’re really bullish on stablecoin usage, not just for our clientele who use it as fiat currency, but also the broader use cases.”

Not just the popular Tether but other stablecoins like USDC have been seeing significant growth over the past three months that has the total market cap across the leading stablecoins surpassing $12 billion. This is a significant increase from last year’s market cap when it hovered around $3.5 billion.

The largest stablecoin by market capitalization, Tether (USDT) continues to push to a new all-time high market cap, marching towards $10 billion.

As per Messari, the reported market cap of Tether is $9.46 billion and according to the Tether Transparency page, it’s $9.34 billion.

Large amount of small-sized Tether deposits made

Interestingly, Tether’s active addresses continue to climb to new highs, currently at 125,107, an increase of 363% YTD.

In the past few weeks, the number of USDT transfers to exchange has also skyrocketed to its all-time high at 20k.

“Given that the inflow exchange volume did not significantly increase, this implies a large amount of small-sized Tether deposits,” reported Glassnode.

The main destination of these inflows is Huobi.

What’s worth noting is, Bitcoin has surpassed the important $10,000 level with $3.14 billion worth of “real” BTC exchanging hands in the past 24 hours compared to $3.56 billion managed by Tether.

Increased Growth and Adoption

Tether activity is actually moving away from the bitcoin blockchain. Initially based on the Omni layer, it has gradually transitioned to Ethereum and Tron.

While USDT has multiple versions, ERC-20 standard represents over $5.7 billion in stablecoin issuance, more than double the next leading version which is issued on Tron blockchain at $2.3 billion.

It also issued on Omni, EOS, Algorand, Liquid, and most recently it announced OMG Network, a Layer-2 scaling solution for transferring value on Ethereum.

In the crypto space, besides acting as a crypto onramp and used by investors to jump in to buy the dips, Tether is seeing increased usage in DeFi with over 10% of Aave’s assets now locked in USDT.

Recently, Compound also added USDT through a community governance poll but it doesn't allow to use the stablecoin as collateral.

On the macro front, with Hong Kong residents rushing for US dollars but the global reserve currency running out of stock, it could propel people to turn to stablecoins either as an alternative to USD or to jump into bitcoin.

Get Daily Headlines

Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

What to Know More?

Join Our Telegram Group to Receive Live Updates on The Latest Blockchain & Crypto News From Your Favorite Projects

Join Our Telegram

Stay Up to Date!

Join us on Twitter to Get The Latest Trading Signals, Blockchain News, and Daily Communication with Crypto Users!

Join Our Twitter

Add comment

E-mail is already registered on the site. Please use the Login form or enter another.

You entered an incorrect username or password

Sorry, you must be logged in to post a comment.
Bitcoin Exchange Guide