The central bank of the United States is not the only money printer in the world. The cryptocurrency industry has its own version of the Federal Reserve in the form of Treasury, which continues to produce new tokens and increase the supply.
It doesn’t seem like a week goes by today without another “whale alarm” bringing a few million USDT more to the market.
, 000 💵 💵 💵 💵 💵 💵 💵 💵 💵 120,000,000 #USDT ($ 120,474,772) minted at Tether Treasury
– Whale alert (@whale_alert) April 16, 2020
The additional $ 120 million comes just three days after the same amount was minted, BeInCrypto reported.
According to Coinmarketcap.com, Tether’s market cap is currently nearly $ 6.4 billion. USDT’s market cap is now only $ 2 billionis ahead and shows no signs of slowing down.
This year alone, this market cap has grown a whopping 56% as the dollar coin machine continues to produce it. The biggest surge in market cap was on March 31, when more than $ 1.5 billion in tokens flooded the markets.
Increased demand for stablecoin
The first quarter of 2020 was the best ever for stable coins. The issue rose to $ 8 billion, which is more than all of 2019 combined.
It appears that the exchanges are the ones who value Tether the most as new historical highs are constantly being reached. Glassnode reported the increases, most recently yesterday with more than $ 1.6 billion.
📈 $ USDT Balance on Exchanges (1d MA) just reached an ATH of USD 1,661,769,830,684
On April 15, 2020 a previous ATH of $ 1,661,209,417,084 was observed
Show metric: https: //t.co/Hpeb0LFt3p pic.twitter.com/Cf3rInpQ5h
– Glassnode warnings (@glassnodealerts) April 16, 2020
The crypto community is increasingly concerned about the nature of Tether and its endorsement, as well as the premise that centralized exchange monopolizes much of it.
On a positive note, Binance’s large inventory could be a precursor to accessing decentralized crypto assets like Bitcoin and Bitcoin, which would be bullish for the industry in general.
Another possibility is an increase in demand for tether in China, where restrictions on capital flow and cryptocurrency remain. Traders and investors there may want more exposure to the dollar as their economy shrinks at the fastest rate since records started. [Reuters]
The transfer value of Ethereum beats Bitcoin
A result of this increase in branch emissions is a record transfer value on the Ethereum network. Research firm Messari found that the Ethereum network between Ethereum and ERC-20 stable coins now carries the same value as Bitcoin.
In addition, stablecoins currently account for up to 80% of this value and are expected to increase along with demand if the trend continues.
The transfer of value to Ethereum has just reached parity with Bitcoin.
This is a story of the explosion of stable coins in the first quarter of 2020.
– Ryan Watkins (@RyanWatkins_) April 15, 2020
The trend could be seen as bullish for Ethereum, which is moving towards the dominant value transfer layer in the cryptocurrency ecosystem.
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