After three months of continuous slumps, Tether’s USDT supply is starting to rise again. This trend could be indicative of a potential market recovery.
The market capitalization of the world’s largest stablecoin saw a slight increase of around 0.7%. The cash put into USDT is relatively small and is less than $500 million. The first mint in three months was held on 29 July. Till August 2, there have been four mints. Nonetheless, industry experts believe that it is bullish for the overall sector.
Capital Injection into Tether (USDT)
Van Eck Associates Corp.’s Gabor Gurbacs, for one, said that the injections could either mean new capital getting invested or old capital moving back to the space. In either case, it’s a win-win. His tweet read,
“Tether (USDT) has increased market cap by $350 million over the past 4 days. Pouring more cash into the stablecoin sector could push the market further up. If new capital is coming in, that could mean That new dollars are being invested.
If this old capital is coming back it means that new capital can be invested with experienced hands. Both indicate growth. ,
Tether’s market cap currently stands at over $66.3 billion. The supply had peaked at $83 billion in May this year before spiraling downward and shrinking by over 20%.
Tether’s declining dominance
Once dominating around 90% of the market, Tether’s share has declined significantly over the years. Now it was around 45 per cent. This year’s drop has helped the stablecoin market gain a significant share in addition to boosting circulation from Tether rivals. Circle’s USD Coin (USDC) gained prominence as USDT shrank.
Binance USD (BUSD), the third-largest stablecoin, has also managed to ramp up its market share by 7.5x over the past couple of years. As reported earlier, a potential regulatory action against one stablecoin will not topple the entire system down as previously feared.
A growing stablecoin market also indicates that a significant amount of fiat currency is still waiting on the sidelines. this was it emphasis on Binance’s CEO, CZ, said that investors do not necessarily have to hold stablecoins if they want to exit crypto.
