Many commentators in the cryptocurrency world write that the demand for stable dollar-backed coins has risen unprecedentedly. But onlyAt the moment it seems to be printing more of its stable coin.
USDT’s market entry has increased dramatically in the past two months. Tether Transparency recently reported that current USDT balances are a whopping $ 7.4 trillion.
Print USDT like never before
The fact that around USD 7.5 trillion is currently spent is impressive. But let’s put it into perspective to really show how quickly this number has only increased in the past month.
On March 27, BeInCrypto reported that Tether (USDT) had passed the $ 6 billion mark. Then, on April 19, Tether exceeded $ 7 billion. Now, on April 24, it’s nearly $ 7.5 billion.
A few days ago, BeInCrypto reported that Tether had spent over $ 1 billion in less than 25 days. That’s about $ 40 million a day – and it’s accelerating. Now, if we make numbers, Tether added $ 1.5 billion in just 28 days.
So this raises the question of where all this supposed demand comes from and whether it actually exists.
The great historical news is lost
Recently a Coindesk article He claimed that we are in the middle of a new wave of “crypto-dollarization” and that the COVID-19 pandemic has increased the demand for dollar-based stable coins. That explains why Tether publishes USDT like never before – so the story says.
However, the graphics are presented in the same story They don’t make sense. As Jakal (@intel_jakal) writes,
All other stable coins with the exception of tether emissions have been flattened. That in itself should trigger the shitting knife. “
Why should a pandemic cause institutional investors to flock to Tether (USDT), the same company that has been accused of using its digital dollar to hide $ 850 million in “missing” funds? If you remember, New York Attorney General Bitfinex sued for it in April 2019.
Other stablecoins do not see an “increase in demand”.
In comparison, Coinbase’s stablecoin USDC near Tether has seen no increase in demand. This is strange for certain reasons. Coinbase is licensed in all major U.S. states. and abroad and is generally considered one of the most regulatory compliant exchanges. This does not mean that investors should turn to the USDC – it only underscores how disproportionate the USDT rise was compared to other stable coins.
Commentators shouldn’t jump on market demand based solely on USDT, especially given the controversial history. A real rise in dollar-based stable coins would and should be felt across the market.
Instead, we have a situation where Tether spends $ 1.5 trillion in less than a month, while the rest of the stablecoin market remains relatively flat. This is enough to trigger alarms and requires a closer look.
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