Since the beginning of March, the leading stablecoin in the cryptocurrency space, Tether (USDT), has seen an increase in market value of more than $5.25 billion. Stablecoin financing is surging, which is positive for market liquidity overall since it usually creates a basis that may assist fulfil the demand for cryptocurrencies like Bitcoin (BTC) and others.
For context, the combined spot Bitcoin Exchange Traded Fund (ETF) market has added less than $4 billion in netflow this month, despite its tremendous rise thus far. Since the asset under management (AUM) growth of the ETF is less than the USDT liquidity, there is sufficient stablecoin to support the accumulation of both BTC and altcoins on exchanges.
The market capitalization of Tether is estimated by CoinMarketCap to be $104,056,161,009 based on the current state of the market. This is a change from the beginning of the month when the market was trading at about $98.65 billion, with a continuous upward trend obscured by the brief period of consolidation throughout the month.
Despite several rumours of inappropriate reserve backing surrounding this supply number, Tether has always denied any such allegations, with strong support from Howard Lutnick, CEO of Tether’s custodian, Cantor Fitzgerald.
Tether’s relevance on crypto market
Tether has been crucial in maintaining the trading integrity of the cryptocurrency market ever since it was founded. Recently, several deals worth billions of dollars have used USDT. Since Tether’s USDT makes a distinctive pair with most other cryptocurrencies, it is hosted on nearly all cryptocurrency trading platforms.
With significant investments, the stablecoin Tether Holdings’ parent firm is progressively moving away from its current role as only an issuer of USDT and towards becoming a Bitcoin mining and development corporation. The association with Bitcoin has generated discussions about market manipulation, further disinformation that the corporation has been vigorously defending against in recent years.
