Tether’s USDT provide reached 74 billion for the primary time since Could 2022, based on CryptoSlate’s knowledge.
Over the previous 30 days, Tether’s provide added roughly 5 billion as its stablecoin rivals like Binance USD (BUSD) and USD Coin (USDC) confronted regulatory scrutiny and banking points. This resulted in buyers ditching these embattled stablecoins for the relative security of USDT.
For context, USDT’s provide grew by 10% within the present yr whereas USDC, BUSD, and DAI provides shrank.
In the meantime, USDT’s market dominance has reached 56.4%
USDT seeing extra whales transactions
Blockchain analytical agency Santiment reported that Tether has lately seen extra whale transactions.
In line with Santiment, the stablecoin witnessed eight $1 billion transactions over the previous yr
Santiment added that Tether’s provide on exchanges dropped by 28.9% to a 10-month low as buyers confirmed extra belief in it following the struggles of USDC.
Crypto buyers flee to USDT
Curve 3pool’s dashboard corroborates Santiment’s knowledge as its liquidity pool is closely imbalanced.
In line with the dashboard, USDC and DAI account for over 90% of the pool, whereas USDT makes up simply 8.61%. Because of this crypto buyers favor holding USDT as in opposition to the opposite stablecoins.
The imbalanced pool reveals the stablecoin preferences of crypto buyers throughout market volatility as a result of it’s supposed to carry equal balances of all three stablecoins.
FUD nonetheless surrounds Tether
Regardless of crypto buyers’ latest religion within the stablecoin, concern stays over its opaque reserves.
In 2021, the stablecoin issuer settled with New York authorities over its greenback reserves backing. Tether additionally noticed an increase within the variety of hedge funds betting in opposition to it after Terra’s algorithmic stablecoin, UST, collapsed.
On the time, USDT honored round $10 billion in redemptions over two weeks as buyers feared the stablecoin may collapse.
Apart from that, the collapse of a number of crypto companies additionally birthed questions of if Tether was uncovered to any of them.
Nevertheless, Tether’s CTO Paolo Ardoino has insisted that the stablecoin issuer has no publicity to any of those companies, together with the distressed crypto-friendly banks. A latest assertion from the agency added that it has been the goal of “outdated, inaccurate, and deceptive protection and allegations.”