ReportWire

Tag: Tether (USDT)

  • Tether Partners KraneShares and Bitfinex Securities to Advance Tokenized Securities


    The arrangement between the trio will help validate tokenized product structures and advance real-world asset integration in blockchains.

    The stablecoin issuing giant Tether has announced a partnership with two entities to foster the advancement of the tokenized securities sector. The firm’s asset tokenization division, Hadron by Tether, will spearhead the collaboration. The companies involved include the tokenized securities platform Bitfinex Securities and the asset manager KraneShares.

    According to a press release sent to CryptoPotato, the alliance between the trio will merge the regulatory foundation, infrastructure, and market expertise required to tokenize assets on-chain. The goal is to accelerate the development and adoption of tokenized securities by connecting traditional financial products with blockchain networks.

    Tether Partners Bitfinex Securities and KraneShares

    Among the services offered by Bitfinex Securities, the platform’s secondary trading liquidity capability is vital to the partnership. The service is licensed under El Salvador’s National Commission of Digital Assets (CNAD).

    KraneShares, which manages the world’s largest China-focused investment fund, will bring its exchange-traded fund (ETF) expertise to the table. Notably, the asset manager will also contribute its global distribution channels, helping the partnership expand its reach across multiple markets.

    As for Hadron by Tether, the platform will serve as the technological backbone for the partnership. The division will provide a conducive environment for secure and scalable tokenized asset markets. This strategic arrangement between the trio will help validate tokenized product structures, analyze institutional demand, and facilitate the integration of real-world assets in blockchains.

    Jesse Knutson, Head of Operations at Bitfinex Securities, said:

    Credible secondary markets are essential to realizing the full potential of tokenized assets. When investors can trade confidently and regulators have clarity, new classes of capital become accessible. This collaboration with KraneShares reflects an exciting direction of travel, whereby institutional capital is increasingly migrating to tokenised assets as it recognizes the value of efficiency, scalability, and innovation.

    Fostering The Adoption of Tokenized Securities

    With institutional interest in real-world asset tokenization rising at a rapid pace, this development places the three companies at an advantage. Market experts have predicted that the global tokenized securities sector will grow from $30 billion in 2025 to roughly $10 trillion by 2030.

    You may also like:

    As the market grows, the collaboration between Hadron by Tether, KraneShares, and Bitfinex Securities will create a foundation for product innovation, cross-border investor access, and operational efficiency. This will be built on El Salvador’s digital asset regulatory framework.

    This collaboration reflects Tether and Bitfinex Securities’ commitment to supporting the evolution of capital markets. Working with KraneShares enables us to connect traditional investment products with next-generation financial infrastructure,” said Paolo Ardoino, Tether CEO and Bitfinex Securities CTO.

    SPECIAL OFFER (Exclusive)

    SECRET PARTNERSHIP BONUS for CryptoPotato readers: Use this link to register and unlock $1,500 in exclusive BingX Exchange rewards (limited time offer).

    Mandy Williams

    Source link

  • USDT Leads $300B Stablecoin Surge Amid Record-Breaking Q3 Crypto Activity

    Q3 2025, historically quiet, became the most active stablecoin period due to regulatory breakthroughs and investor interest.

    The total market capitalization of stablecoins has exceeded $300 billion for the first time in history this week. Genius Act and SEC accounting guidance have significantly boosted confidence in stablecoins.

    This, in turn, drove institutional and retail adoption in 2025.

    $300B Milestone

    According to DeFiLlama, Tether (USDT) remains the dominant stablecoin as it accounts for 58.52% of the market with a valuation of $176.241 billion.  Circle’s USD Coin (USDC) follows with a market capitalization of more than $74 billion, while USDe, the third-largest yield-bearing stablecoin, holds $14.83 billion.

    The milestone indicates the growing prominence of stablecoins in the broader cryptocurrency ecosystem, and comes amidst market-wide recovery after a volatile week.

    Historically, Q3 is quieter for crypto, but 2025 reversed that trend and ended up becoming a record-breaking period for stablecoins. Activity surged thanks to both regulatory clarity and growing user engagement. A report by Cex.io revealed that Google searches for “stablecoin” spiked following landmark announcements.

    For instance, the US enacted the Genius Act, while the Securities and Exchange Commission (SEC) issued new accounting guidance, which classified USD-pegged stablecoins as cash equivalents. These regulatory developments boosted trust among both institutional and retail participants.

    Impact On USD’s Global Role

    The rapid growth of the stablecoin market is significantly influencing the global role of the US dollar, according to John Murillo, Chief Business Officer of B2BROKER. In a statement to CryptoPotato, Murillo said that this surge is partly due to last month’s slow momentum in major cryptocurrencies like Bitcoin and Ether, which prompted investors and users to turn to dollar-pegged stablecoins.

    You may also like:

    He explained,

    “With it, the global footprint of the US dollar has certainly deepened, because around 98% of all stablecoins are directly or indirectly dollar-pegged. This has been, for better or worse, embedding USD into decentralized finance, cross-border payments while helping stabilize many inflation-hit economies. In regions like Nigeria and Venezuela, digital dollars now circulate more freely than local currencies, extending the dollar’s dominance into the digital realm.”

    However, Murillo warns that this growth carries systemic risks. The exec added that stablecoins typically operate outside conventional banking regulations, which raises questions about reserve transparency, liquidity vulnerabilities, and regulatory gaps. A sudden loss of confidence, whether from unclear backing or platform failures, could, in fact, destabilize both crypto markets and traditional fiat systems.

    Additionally, as stablecoins increasingly operate within decentralized networks, they begin to function independently of US institutions, which potentially limits Washington’s direct control over monetary influence.

    “The dollar remains dominant in form, but increasingly contested in function.”

    SPECIAL OFFER (Sponsored)

    Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

    LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

    Chayanika Deka

    Source link

  • Tether’s $1 Billion Bitcoin Buy Triggers Market Bubble Concerns, CEO Warns

    Tether, the issuer behind the leading stablecoin, USDT, has made headlines by acquiring $1 billion worth of Bitcoin—approximately 8,800 BTC—during the third quarter of this year. 

    While many investors have reacted positively to this significant investment, caution has emerged from industry experts like Jacob King, CEO of SwanDesk, who warns that this move may contribute to what he believes could be the “largest bubble in history.”

    Bitcoin’s True Value Could Be Below $1,000

    In a recent post on social media platform X (formerly Twitter), King raised serious concerns about the Bitcoin market, claiming that 80-90% of the total buy volume is artificially inflated. 

    He argues that Tether essentially creates money “out of thin air,” injecting it into Bitcoin and thereby exacerbating the speculative environment. Despite the growing trend of exchange-traded funds (ETFs) and institutional accumulation of Bitcoin as a treasury reserve, the cryptocurrency’s real value might be “far below $1,000.”

    Related Reading

    This narrative has been ongoing for years, provoking varied responses within the community. One investor countered King’s assertion by asking why major institutional players, including sovereign ETFs and Fortune 500 companies, continue to invest in Bitcoin if such a large portion of the trading volume is deemed fake. 

    His argument suggests that either these institutions are misinformed or that the real bubble lies within traditional fiat currencies rather than cryptocurrencies like Bitcoin.

    King refuted this notion, alleging that the idea of significant institutional investment in Bitcoin is largely “a myth.” He contended that most inflows into ETFs are driven by retail investors, not large institutions. 

    Skepticism Vs. Optimism

    Further amplifying his skepticism, King criticized Strategy (previously MicroStrategy), the largest publicly traded company holding over 600,000 BTC, describing it as a “leveraged Bitcoin casino.” 

    He alleged that the company’s co-founder, Michael Saylor, has a history of inflating numbers during the dot-com bubble, suggesting that the current situation is a repetition of “past mistakes.”

    Related Reading

    In contrast, other experts like Quinten Francois view Tether’s recent Bitcoin purchase through a more optimistic lens. Francois highlights the US government’s push for stablecoin adoption via the GENIUS Act, which mandates that stablecoin issuers be licensed, transparent, and fully backed by US Treasuries. 

    He argues that this regulatory framework could channel trillions in offshore Eurodollars into US bonds through stablecoins, effectively continuing quantitative easing but through these private entities rather than the Federal Reserve (Fed).

    The daily chart shows BTC’s price consolidation below record highs. Source: BTCUSDT on TradingView.com

    At the time of writing, BTC is trading within the lower channel of its consolidation range at $113,200, with no clear indication of where prices will move next. According to CoinGecko data, the leading cryptocurrency is currently 8% below its all-time high. 

    Featured image from DALL-E, chart from TradingView.com 

    Ronaldo Marquez

    Source link

  • Tether Brings USDT to Bitcoin’s Ecosystem Through RGB

    Prominent stablecoin issuer, Tether, has announced plans to launch USDT on RGB, a next-generation protocol for issuing digital assets directly on Bitcoin.

    RGB, which recently went live on mainnet with its 0.11.1 release, is designed to extend Bitcoin’s capabilities beyond being a store of value by enabling private, scalable, and user-controlled asset issuance.

    Tether’s Bitcoin Leap

    Through this integration, USDT will become transactable natively on the Bitcoin network, combining the security and decentralization of the world’s largest blockchain with the stability of Tether.

    In its official press release, the company also revealed that users will be able to hold and transfer USDT alongside BTC within the same wallet, benefit from private and sovereign transactions, and even exchange value offline. Following the development, the firm’s chief executive, Paolo Ardoino, commented,

    “Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable. With RGB, USDT gains a powerful new pathway on Bitcoin, reinforcing our belief in Bitcoin as the foundation of a freer financial future.”

    Beyond its Bitcoin-focused initiatives, Tether has continued to focus on global expansion and regulatory engagement.

    US Ambitions Amid Regulatory Clarity

    Tether is preparing to expand into the United States following the passage of the GENIUS Act, which provides a more transparent regulatory framework for stablecoins. Ardoino had previously doubled down on plans to develop a US-focused stablecoin that aims for institutional use, including payments, interbank settlements, and trading infrastructure.

    While Tether continues to grow in emerging markets like Latin America, Asia, and Africa, the US expansion will require strict compliance with anti-money laundering standards and federal regulations.

    Despite past legal challenges, including a DOJ investigation and a settlement over Bitfinex’s undisclosed loss, Tether has been vocal about efforts to freeze illicit funds and support global financial crime enforcement initiatives.

    Building on its expansion ambitions, Tether tapped Bo Hines, former Executive Director of the White House Crypto Council under President Donald Trump, as its new Strategic Advisor for Digital Assets and US Strategy. Hines has been tasked to lead the company’s efforts to expand its presence in the United States, leveraging his experience in policy, legal frameworks, and blockchain innovation.

    Meanwhile, the stablecoin giant posted impressive second-quarter results as it earned $4.9 billion in profit. This is a 277% increase compared to the same quarter last year. Its year-to-date revenue now stands at $5.7 billion, with $3.1 billion derived from recurring operations and $2.6 billion from investment gains in gold and Bitcoin. As of June 30, 2025, Tether held $162.5 billion in reserves against $157 billion in liabilities, giving it a strong surplus.

    SPECIAL OFFER (Sponsored)

    Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

    LIMITED OFFER for CryptoPotato readers at Bybit: Use this link to register and open a $500 FREE position on any coin!

    Chayanika Deka

    Source link

  • Tether on TRON Network Surpasses Visa’s Average Daily Volume Hitting $53B

    Tether on TRON Network Surpasses Visa’s Average Daily Volume Hitting $53B

    The 24-hour trading volume of Tether (USDT) reached $53 billion on the TRON network, surpassing payment giant Visa’s average daily trading volume of $42 billion for Q1, 2024.

    This comparison is particularly important given Visa’s stature as one of the world’s largest payment processors, managing billions of transactions across more than 200 countries and regions.

    USDT on TRON Outpaces Visa’s Daily Trading Volume

    The rapid growth in the value and usage of TRON-based USDT is highlighted in the latest statistics by Lookonchain’s latest tweet, which read,

    “The 24-hour trading volume of $USDT on #TronNetwork is $53B, exceeding Visa’s average daily trading volume. Visa’s trading volume in Q1 2024 was $3.78T and the average daily trading volume was $42B.”

    It is important to note that USDT on the TRON network recorded over 45.5 million holders, according to the data from TronScan, which also revealed a total transfer count exceeding 1.8 billion during the same period. Interestingly, the top ten holders of USDT on TRON possess 27.69% of the total supply on the network, holding 16.56 billion USDT.

    The latest development reflects a broader trend of increased demand for stablecoins such as USDT amidst a downturn in the crypto market.

    Meanwhile, the USDT transaction volume on the TRON network has been steadily rising since January 2023. Averaging around two million transactions almost daily since February, this uptrend has continued into 2024 as well.

    For instance, TRIN’s weekly volume for USDT hit a whopping $110 billion in the first week of April alone. This figure was double the amount settled on rival blockchain giant Ethereum, thereby highlighting investor inclination towards TRON.

    Tether’s aUSDT, a Gold-Backed Stablecoin

    On June 17, Tether CEO Paolo Ardoino introduced aUSDT, a new synthetic dollar backed by Tether’s gold-backed digital asset XAUt. This move was lauded by industry analyst and stock-to-flow model creator Willi Woo, who called it a “genius business idea” by the stablecoin issuer.

    As explained by Ardoino, while USDT currently earns returns on U.S. Treasury Bills, the new stablecoin will benefit from gold gains.

    SPECIAL OFFER (Sponsored)

    Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

    LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!

    Chayanika Deka

    Source link

  • Max Keiser Explains How Tether and El Salvador Will Send Bitcoin (BTC) Price to $220K

    Max Keiser Explains How Tether and El Salvador Will Send Bitcoin (BTC) Price to $220K

    American broadcaster and Bitcoin proponent Max Keiser believes the stablecoin issuer Tether and El Salvador, as well as the declining United States dollar (USD), will push BTC’s price to $220,000 in no distant time.

    In a Saturday tweet, Keiser said the USD is doomed because inflation will “sky harder,” while this happens, BTC will be well on its way to $220,000.

    The USD Is “F****d”

    In comments sent to CryptoPotato, Keiser explained that Tether’s stablecoin business is strengthening Bitcoin and weakening the USD, which forces the U.S. government to keep raising interest rates.

    According to the Bitcoin bull, every country in the BRICS union, including China and Russia, has understood that the United States is dying in a debt trap of its making, possibly leading to hyperinflation in the printing of USD. As a result, China and Russia are discarding the USD as the world reserve currency and conducting bilateral deals instead.

    Worse still, BRICS is reportedly launching a new, gold-backed digital currency later this year, putting “the final nail” into the dollar and the North Atlantic Treaty Organization (NATO).

    While BRICS continues its fight against the U.S., American financial services firm Cantor Fitzgerald and Tether have an ongoing speculative attack against the dollar, Keiser added. Unfortunately, the attack would hasten the demise of the fiat currency.

    Tether’s Role in The Dollar’s Demise

    Millions of crypto users swap fiat money for Tether (USDT), and the stablecoin company, in turn, swaps the fiat for U.S. treasuries at Cantor, using the interest paid by the firm to buy more BTC. With the increasing rates in the U.S., Tether’s profits are rising, as are the company’s BTC purchases.

    “It’s a USD doom loop that can’t be stopped,” Keiser said.

    Besides Tether, Michael Saylor’s business intelligence firm MicroStrategy is part of the speculative attack, according to Keiser. The broadcaster said the difference between the two firms is that MicroStrategy has to “dilute shareholders with serial issuance of preferreds,” while Tether does not need to pay any interest.

    With time, the pace of BTC purchases from several entities, including Tether, MicroStrategy, and El Salvador, will explode, Keiser noted. Speaking about the first country to legalize BTC as a legal tender, Keiser, who has had several meetings with the nation’s President, said:

    “El Salvador is always looking to increase its bitcoin position, substantially so.”

    On the other hand, the dollar will implode, and soon, no market participant will accept fiat for BTC. The rise in BTC purchases would push the asset’s value to $220,000, he asserted.

    By the time the U.S. launches their central bank digital currency, it would be too late, as the BRICS currency will be the world reserve currency, Bitcoin will be the world’s reserve asset, and Tether will be the global replacement for the SWIFT network.

    SPECIAL OFFER (Sponsored)

    Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

    LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!

    Mandy Williams

    Source link

  • USDT Transaction Volume Soars on TRON DAO, Hits 2 Million Daily

    USDT Transaction Volume Soars on TRON DAO, Hits 2 Million Daily

    There has been a remarkable surge in USDT transactions within the TRON ecosystem via TronDAO, showing a substantial increase since early February, now averaging over two million transactions daily.

    According to the latest data compiled by IntotheBlock, the surge brings the transaction volume close to the peak observed in January 2023.

    USDT Transaction Volume Soars on TRON DAO

    For the uninitiated, TRON DAO is a decentralized autonomous organization connected to a blockchain ecosystem. USDT, complying with the TRC-20 token standard on TRON, allows transfers using various non-custodial wallets like TronLink, Trust Wallet, and MetaMask.

    TRON’s popularity for stablecoin transfers, particularly with USDT TRC-20 tokens, stems from its scalability advantage over Ethereum, resulting in comparatively lower on-chain fees.

    With its higher throughput capacity, the TRON network supports intensive projects without the significant “gas” requirements associated with Ethereum, making it an increasingly favored platform for such transactions.

    However, Tether, being a controversial entity in the eyes of several law enforcement agencies, has also brought its stablecoin, USDT, under scrutiny.

    Recent reports, including a United Nations study earlier this year, suggest a rising trend of money laundering and fraudulent activities in Southeast Asia utilizing USDT for payments and fund transfers, particularly via its TRC-20 protocol.

    However, Justin Sun and TRON DAO have refuted these allegations, with the latter stating active collaboration with on-chain forensic partners to share transaction-related information and dismiss such claims.

    USDT Expansion

    Despite the intense scrutiny and backlash, USDT has grown significantly in tandem with market recovery. The stablecoin broke above a milestone of $100 billion market cap earlier this month.

    In terms of expansion, Tether recently announced the launch of USDT on the Celo blockchain, making it the 15 network to accommodate the leading stablecoin, after Ethereum, TRON, Polygon, Avalanche, and Algorand, among others.

    Meanwhile, Tether has intensified its efforts to focus on artificial intelligence (AI) this year. Key areas of focus include the development of open-source, multimodal AI products to establish new industry benchmarks. Additionally, the crypto firm intends to collaborate with various entities to integrate AI solutions into market-oriented products, addressing real-world challenges.

    SPECIAL OFFER (Sponsored)

    LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!

    Chayanika Deka

    Source link

  • Tether Smashes Profit Records: $2.85 Billion Surge in Q4 2023

    Tether Smashes Profit Records: $2.85 Billion Surge in Q4 2023

    Stablecoin issuer Tether experienced a “record-breaking” net profit surge, amounting to $2.85 billion in the fourth quarter of 2023.

    Around $1 billion of this profit stemmed from net operating gains, largely derived from interests in the US Treasury, with the remainder mainly coming from the appreciation of gold and Bitcoin reserves.

    • Notably, there was a substantial increase in excess reserves, reaching a historic high of $5.4 billion, with an additional $640 million directed towards strategic investments in various projects, including mining, AI infrastructure, and P2P telecommunications, among others.
    • Tether’s Q4 attestation, signed by BDO Italy, also revealed the elimination of secured loan risks from its token reserves, addressing community concerns.
    • While such secured loans are widely overcollateralized, Tether accumulated enough excess reserves to cover the entirety of the exposure. This is in response to the community’s past expressed concerns about this part of the portfolio.
    • Tether’s core operation revolves around managing the USDT stablecoin, contributing significantly to the company’s 2023 net profit of $6.2 billion.
    • Approximately $4 billion of this profit was derived from investments in US Treasuries, Reverse Repo, and Money market funds, showcasing successful diversification efforts, according to the report.
    • In its official statement. Paolo Ardoino, CEO of Tether, said,

    “Tether’s Q4 attestation underscores our commitment to transparency, stability, and responsible financial management. Achieving the highest percentage of reserves in Cash and Cash Equivalents reflects our dedication to liquidity and stability.”

    • In the fourth quarter, Tether increased its Bitcoin holdings by acquiring an additional 8,888 bitcoins, bringing its total to roughly 66,465 bitcoins, which are currently valued at approximately $2.8 billion.
    • The report comes amidst a significant increase in USDT’s market cap, which is currently hovering above $96 billion.
    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).



    Chayanika Deka

    Source link

  • Expert Analysis: Bitcoin ‘Bottom Is Not In’, Potential $30K Retest On The Horizon

    Expert Analysis: Bitcoin ‘Bottom Is Not In’, Potential $30K Retest On The Horizon


    Bitcoin (BTC), the largest cryptocurrency by market capitalization, closed January above the $40,000 threshold, signaling positive price action. However, market expert Justin Bennett suggests that Bitcoin’s bottom has yet to be reached. 

    Bennett’s analysis highlights the possibility of further price declines, with Tether’s stablecoin USDT dominance (USDT.D) chart indicating potential downward movements. 

    Tether Dominance Signals Concerns For BTC’s Price

    Bitcoin’s recent price recovery and ability to surpass the $40,000 level have provided optimism among investors. Nevertheless, Bennett believes further price declines could follow a retest of the mid $44,000 range. 

    Bennett highlights the inverse relationship between Tether dominance and Bitcoin. According to his analysis, the levels on the Tether dominance chart since October have been reliable indicators for Bitcoin’s price movements. 

    Tether’s USDT dominance growth. Source: Justin Bennett on X

    According to Bennett’s analysis, as depicted in the chart above, Tether’s dominance may experience a potential increase from its current level of 6%. This increase could bring it closer to the 8% mark. 

    In such a scenario, Bitcoin’s performance would likely move in the opposite direction, indicating potential price declines soon.

    On January 25, Bennett suggested that Bitcoin could drop another 20% from its current levels, which would place it around $30,000. If this scenario plays out, it would be crucial for Bitcoin bulls to defend the $30,000 level to maintain the current bullish structure.

    A drop below $29,000 would give bears a stronger position, with only three major support lines remaining at $28,400, $25,900, and $24,000 before a potential retest of the $20,000 mark. 

    The performance of these support levels and Bitcoin’s ability to withstand increased selling pressure will be key factors to monitor. The future market sentiment will also play a significant role in determining Bitcoin’s price trajectory.

    Bitcoin Witnesses Stellar Accumulation Trend

    Despite the possibility of further price drops, renowned crypto analyst Ali Martinez has shed light on a notable trend in BTC’s recent accumulation streak by investors.

    According to Ali Martinez’s analysis, Bitcoin is experiencing a significant accumulation streak, rivaling some of the most notable periods observed over the past few years. 

    The Accumulation Trend Score, a metric that gauges the buying activity of larger entities, has remained consistently high, hovering near 1 for the past four months.

    Bitcoin
    BTC’s Accumulation Trend Score is trending to the upside. Source: Ali Martinez on X

    This suggests that influential market participants are actively accumulating Bitcoin, signaling their confidence in the long-term potential of the cryptocurrency. 

    Martinez’s observations further indicate that Bitcoin’s price range around $42,560 has emerged as a highly significant interest zone. 

    Within this range, an impressive total of 912,626 BTC has been transacted. This is expected to be a significant support level, potentially preventing further downside movements and fostering increased buying interest.

    These trends collectively contribute to a positive market outlook, suggesting that despite potential price drops, Bitcoin remains an attractive asset for long-term investment.

    Bitcoin
    The daily chart shows BTC’s sideways price action between $42,900 and $43,000 over the past 24 hours. Source: BTCUSDT on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com 

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.



    Ronaldo Marquez

    Source link

  • Stablecoins Surge: USDT Leads $400 Million Inflows

    Stablecoins Surge: USDT Leads $400 Million Inflows


    The cryptocurrency industry has witnessed a significant change in the movement of stablecoins, offering valuable observations into the evolving dynamics of the market. Recent data from IntoTheBlock and CryptoQuant has shown a surge in stablecoin inflows into exchanges, reaching record highs in January.

    Notable inflows were observed on January 2nd ($478 million), January 3rd ($489 million), and January 26th ($673 million). However, this trend has since reversed, with outflows dominating the market.

    On January 30th, there was a substantial outflow of $412 million, marking the second-highest daily outflow recorded in the month, following the $541 million outflow on January 19th.

    USDT Leads Stablecoin Rally, But Caution Persists In Crypto Market

    An analysis of the 24-hour trading volume of the top stablecoins on CoinMarketCap reveals that Tether (USDT) and USD Coin (USDC) collectively accounted for approximately 90% of the total volume. Tether, in particular, has been dominant in terms of flows, with a 24-hour trading volume exceeding $42 billion, while USDC’s volume stood at around $6 billion.

    Taking a closer look at the flow of USDT through CryptoQuant, it was found that there was a substantial inflow of $373 million on January 26th, followed by a prevailing trend of outflows, with over $83.4 million observed at the time of writing.

    USDTUSD currently trading at $0.99897 on the daily chart: TradingView.com

    Experts suggest that the rise in stablecoin inflows onto exchanges, particularly the $478 million on January 2nd, could indicate traders’ and investors’ readiness to participate in the market or their desire to safeguard their funds during uncertain times.

    Conversely, the shift towards outflows may signal caution or preparation for potential market volatility. Additionally, the substantial inflow of stablecoins, especially USDT, could indicate increased buying power and intentions to establish positions in the cryptocurrency space.

    Stablecoins Surge, Signal Investor Preparation

    The increase in stablecoin inflows onto exchanges can be interpreted in two ways. Firstly, it may indicate that investors and traders are preparing to enter the market. By moving their funds into stablecoins, they can quickly transition into other cryptocurrencies when they perceive favorable opportunities. This suggests a readiness to participate and take advantage of potential market movements.

    Secondly, the rise in stablecoin inflows may also reflect a desire to keep funds in a secure manner, particularly during uncertain times. Stablecoins offer stability by being pegged to a specific asset, such as the US dollar, which can be appealing to investors seeking to protect their capital in times of market volatility. This cautious approach can be seen as a way to safeguard funds and mitigate risks in an unpredictable market.

    Tether Records Nearly $3 Billion Profit 

    Meanwhile, Tether announced a “record-breaking” $2.85 billion in quarterly profits as the market capitalization of its main token, USDT, approached $100 billion.

    According to a blog post by Tether, the interest gained on the company’s enormous holdings in US Treasury, reverse repo, and money market funds—which support the USDT stablecoin—account for around $1 billion of the earnings in the most recent quarterly attestation report that was released on Wednesday. Everything else was “mainly” due to the growth of Tether’s other assets, like gold and bitcoin (BTC), the stablecoin issuer said.

    Featured image from Wccftech, chart from TradingView

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.



    Christian Encila

    Source link

  • Another Factor That Might Positively Influence the Bitcoin Price Besides the Halving

    Another Factor That Might Positively Influence the Bitcoin Price Besides the Halving

    Tether’s (USDT) circulating supply has long been a subject of intense speculation regarding its potential impact on the price of Bitcoin.

    Recent findings from CryptoQuant suggest a significant correlation between the supply of USDT and movements in Bitcoin’s price, particularly since the latter part of 2022.

    USDT Influx Fuels Bitcoin Surge

    The analysis indicated that the circulating supply of USDT has surged by approximately 30 billion, with each surge traditionally coinciding with a positive impact on Bitcoin’s price trajectory. This trend suggests that the influx of USDT supply tends to stimulate growth in the value of Bitcoin, indicating improved liquidity in the market.

    The increase in USDT supply has been accompanied by a surge in Bitcoin’s price, reflecting heightened investor interest and anticipation surrounding factors like the potential introduction of a spot Bitcoin ETF. This data analysis highlighted the strong correlation between USDT supply dynamics and fluctuations in Bitcoin’s price, contributing to a more dynamic and voluminous trading environment for the cryptocurrency.

    “Data analysis reveals a high correlation between USDT supply and Bitcoin price movement, leading to an increase in volume and a dynamic environment for the Bitcoin price.”

    As such, an increase in USDT supply could typically correspond to a rise in Bitcoin price, and conversely, a decrease in USDT supply often coincides with a decline in Bitcoin price.

    Additionally, there appears to be a delay of approximately one month between changes in USDT supply and corresponding changes in Bitcoin price, implying that shifts in USDT supply may serve as a leading indicator for future trends in Bitcoin’s price.

    USDT’s Growing Dominance

    USDT has maintained its position as the dominant stablecoin in the market, nearing a total asset value of $100 billion after experiencing remarkable growth over the past six years. Since the start of 2018, its market capitalization has skyrocketed by an astonishing 6,560%.

    Paolo Ardoino, the CEO of the stablecoin issuer, attributed this success to a strong performance in the fourth quarter. Meanwhile, USDT has been capitalizing on high yields from US Treasury bills and allocating a portion of its profits towards purchasing Bitcoin.

    The findings are interesting, given that Bitcoin halving years and those that follow have historically been very bullish for BTC.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).





    Chayanika Deka

    Source link

  • Tether Holds This Much Bitcoin After Late 2023 Purchase

    Tether Holds This Much Bitcoin After Late 2023 Purchase

    Stablecoin giant Tether quietly bought over $360 million worth of Bitcoin (BTC) at the start of the year, according to on-chain data.

    The purchase brings the company’s total Bitcoin holdings up to 66,400 BTC worth $2.7 billion.

    Tether’s Massive Bitcoin Buys

    According to Bitcoin market intelligence provider CryptoQuant, a blockchain address previously identified as Tether’s saw its balance rise from 57,500 BTC to 66,400 BTC on January 4.

    That’s the largest single-day rise for the address since the end of March 2023. In May, Tether formally revealed that 2% of its reserves were held in Bitcoin, and announced plans to allocate 15% of its operating profits into BTC.

    “Tether is now the 11th largest Bitcoin holder in the world,” wrote a CryptoQuant analyst regarding the firm’s newly discovered wallet balance in August.

    At the time, a digital asset analyst at 21Shares claimed to have identified Tether’s wallet by comparing its suspected address’s holdings to the company’s quarterly attestation reports. The Block later confirmed with a private source that the address was Tether’s.

    The address first received a Bitcoin transaction in September 2022 for 33,900 BTC, worth $654 million at the time, meaning it has more than doubled its coins despite Bitcoin’s rising price in the past 15 months.

    Tether is one of the most profitable companies in the crypto industry. Its Tether (USDT) token – which currently boasts a market cap of $94 billion – is 100% backed by reserves of the same size comprised mostly of cash and short-term US Treasuries.

    How Tether Spends Its Money

    According to its latest attestation, the company earned $1 billion in profit from its investments in treasuries and other cash equivalents in Q3 alone.

    The company is currently using much of its profits to expand research across the Bitcoin and crypto industry and to bolster its “excess reserves” in case of volatility in Tether’s riskier investments. As of Q3, the company held $3.2 billion in excess reserves, including positions in gold and Bitcoin.

    Tether is also foraying into the Bitcoin mining industry. Back in June, the firm backed the initial fundraising efforts for El Salvador’s $1 billion Bitcoin mining initiative.

    Cantor Fitzgerald CEO Howard Lutnick confirmed in an interview this week that his company holds Tether’s treasuries, and assured investors that its tokens are fully backed.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    Andrew Throuvalas

    Source link

  • Tron's Balancing Acts: USDT Dominance Peaks as DeFi Experiences a Renaissance: Report

    Tron's Balancing Acts: USDT Dominance Peaks as DeFi Experiences a Renaissance: Report

    Stablecoin total value locked (TVL) on the Tron blockchain experienced a slight decline in the early part of the second half of 2023 but ultimately surged to reach record highs of approximately $48 billion.

    This is according to a recent report by Reflexivity, which revealed that around 94% of this total value belonged to USDT.

    Tron Emerges as Top Choice for USDT

    Reflexivity Research stated that Tron has maintained its position as the leading blockchain for USDT, surpassing the Ethereum mainnet by approximately 8% in terms of TVL.

    Tether, among the earliest fiat-backed stablecoins in the crypto market, initially launched on Bitcoin’s Omni chain, later expanded to Ethereum, and is currently predominantly present on Tron and Ethereum.

    A noteworthy distinction lies in the composition of stablecoins on Ethereum, which exhibits a more balanced mix of USDT and USDC on-chain, while the former overwhelmingly dominates the Tron ecosystem.

    This dominance is further evident in Tron contracts, where the USDT Token contract consumes the majority of on-chain “energy,” accounting for approximately 95.6% of all contracts. This suggests that Tron is primarily utilized for USDT transactions with limited diversification.

    Despite a moderate increase in USDT volume throughout 2023, a particularly intriguing trend is the 130% growth in the number of USDT holders over the same period, according to data compiled by TronScan.

    Tron’s DeFi Renaissance

    The Tron ecosystem witnessed back-to-back exploits. Justin Sun-acquired crypto exchange Poloniex was hacked in November last year. Attackers reportedly stole nearly $125 million after breaching the hot wallets.

    Weeks later, crypto exchange HTX and blockchain protocol Heco Chain were compromised for a cumulative $97 million in different digital assets.

    Despite this, Tron’s decentralized finance side of things remained stable.

    Citing data from DeFiLlama, Reflexivity observed that the TVL in DeFi on the Tron blockchain witnessed a growth of approximately 43% throughout the second half of 2023, reaching a total of around $8.1 billion.

    This increase solidified Tron’s position as the second-highest protocol in terms of TVL, trailing behind Ethereum with approximately $29 billion and surpassing Binance Smart Chain (BSC) with $3.1 billion. The ascent was primarily led by the leading DeFi protocol, JustLend, which contributes to approximately 80% of the total TVL on the Tron network.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    Chayanika Deka

    Source link

  • Tether's USDT Latest ATH, Plans for 2024, and Diverse Projects: CEO Ardoino

    Tether's USDT Latest ATH, Plans for 2024, and Diverse Projects: CEO Ardoino

    Tether, the company behind the popular stablecoin USDT, announced a significant milestone in its growth, with its market value reaching $91 billion.

    It was also revealed that over 2023, the firm has added approximately $4 billion in excess reserves to its stablecoin’s consolidated reserves, showcasing its commitment to stability and resilience in the volatile digital currency market.

    Tether’s Ardoino Reveals Company’s Growth and Plans

    The announcement was made by Tether’s CEO, Paolo Ardoino, who detailed the company’s journey and its plans for the future.

    Ardoino reminisced about his first public speech at the CryptoCompare conference in March 2020. Describing the event as a moment of innovation storytelling for Tether, he reflected on the challenges and successes the company has faced.

    “Tether evolved. We listened to our community, we learned and improved,” Ardoino shared, highlighting the company’s commitment to resilience and innovation.

    The CEO also highlighted the success of Tether’s USDT as not just a financial instrument but an innovation that has gained the trust of millions worldwide, particularly in emerging markets and developing countries.

    Tether’s focus on providing financial services to unbanked communities has been a notable part of its mission, addressing the neglect of these communities by traditional banking sectors.

    Tether’s expansion isn’t limited to its stablecoin operations, as it has been actively investing in and co-founding various innovative projects.

    These ventures include Holpunch, which is working on a new Internet layer and runtime for P2P applications; Synonym, focusing on making Bitcoin products accessible to the masses; Northern Data, aligning with Tether’s vision of accessible AI infrastructure; and Tether Energy, making strides in the Bitcoin mining space and developing a P2P/IoT platform named Moria for operational efficiency.

    “These investments are just the tip of the iceberg,” Ardoino hinted, suggesting that more announcements are to come.

    Tether CEO Ardoino Forsees Exciting 2024

    Ardoino expressed excitement for 2024, hinting at the launch of new products and the consolidation of existing ones, emphasizing his pride in leading a team of brilliant, dedicated, and passionate individuals.

    “We plan to launch several new products and consolidate existing ones,” he stated, emphasizing the company’s forward-looking vision.

    Reflecting on the journey, Ardoino concluded with gratitude and anticipation, “It’s a long way to the top if you wanna Rock ‘n Roll.”

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    Wayne Jones

    Source link

  • Stablecoins Become the Preferred Quote Currency in Recent Market Trends: Glassnode

    Stablecoins Become the Preferred Quote Currency in Recent Market Trends: Glassnode

    In 2023, digital assets experienced an exceptional year, witnessing a remarkable surge in Bitcoin prices by over 172%, with a correction of less than 20%. In addition to Bitcoin and Ether, capital inflows in stablecoins also remained positive.

    The market surpassed crucial technical and on-chain pricing models, and October emerged as a pivotal moment for institutional capital movement, according to Glassnode’s recent analysis.

    Stablecoins in 2023

    Over the last two years, the market capitalization of global stablecoins has exceeded $100 billion, and USDT’s market cap alone has accounted for over $90 billion. The growth is primarily propelled by their use in applications related to decentralized finance (DeFi), trading, and liquidity management.

    Despite being mired in controversy, Glassnode observed a notable shift from the previous cycle in terms of the role played by stablecoins in market dynamics. They have emerged as the “preferred quote currency” for traders and a primary source of market liquidity.

    The aggregate supply of stablecoins has been decreasing since March 2022, declining by 26% from its peak due to regulatory pressures with the US Securities and Exchange Commission (SEC) charging BUSD as a security, capital rotation (favoring US treasuries over non-interest bearing stablecoins), as well as diminishing investor interest during the bear market.

    However, October has marked a turning point, with total stablecoin supplies hitting a low at $120 billion and starting to grow at a monthly rate of up to 3%. This marks the first expansion in stablecoin supply since March 2022 and indicates a likely resurgence of investor interest.

    “The relative dominance between various stablecoins has also undergone significant shifts between 2022 and 2023. Previously rising stablecoins like USDC and BUSD have seen their dominance shrink significantly, with BUSD entering redemption-only mode, and USDC dominance falling from 37.8% to 19.6% since June 2022.”

    Stablecoin Lobbying Efforts

    Stablecoins serve as a bridge between the crypto and traditional financial systems. Despite the aforementioned controversy, this cohort of digital assets has garnered attention from not only the Biden administration but also bipartisan congressional lawmakers.

    Tether, the issuer of the largest stablecoin commanding a 72.7% market share, reportedly allocated $760,000 for lobbying in the first three quarters of 2023, doubling the expenditure from the previous year.

    Circle Internet Financial, the fintech company and issuer of USDC, also increased its lobbying spending to $300,000 during the same timeframe.

    Additionally, crypto exchange Coinbase invested $2 million in lobbying activities covering various crypto-related issues, with a notable focus on stablecoins. Traditional financial entities like Bank of America and Visa, along with the US Chamber of Commerce, have similarly contributed to lobbying efforts.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    Chayanika Deka

    Source link

  • Tether Reveals Partnerships with Secret Service, FBI

    Tether Reveals Partnerships with Secret Service, FBI

    Tether, the creator of the popular USDT stablecoin, has publicly disclosed letters sent to key U.S. legislative committees revealing its partnerships with the Secret Service and FBI.

    This update comes after Tether’s recent measures, which included implementing a wallet-freezing policy aimed at individuals on the U.S. Specially Designated Nationals list, freezing over 200 wallets.

    Tether’s Proactive Stance to Uphold Crypto Integrity

    Under Paolo Ardoino’s newly appointed CEO’s leadership, Tether has ramped up efforts to combat the misuse of its stablecoins in illegal activities.

    These letters, addressed to the U.S. House Financial Services Committee and the U.S. Senate Committee on Banking, Housing, and Urban Affairs, highlight Tether’s unwavering commitment to preserving safety and maintaining active collaborations with legal authorities.

    The letters were shared with Senator Cynthia Lummis, a widely recognized cryptocurrency supporter within the Senate. Additionally, the letters were dispatched to the heads and the highest-ranking members of the previously mentioned committees.

    The recent letters by Tether’s CEO elaborate on the methods used to prevent individuals from exploiting USDT. Tether claims to have successfully frozen 326 wallets, controlling 435 million USDT, in collaboration with law enforcement agencies.

    This includes the recent freezing of wallets under sanctions from the U.S. Office of Foreign Asset Controls (OFAC). According to blockchain statistics, Tether froze 161 Ethereum wallets, though 150 currently contain no USDT.

    According to Ardoino, Tether has also onboarded agencies like the Department of Justice, U.S.Secret Service and is also in the process of doing the same with the Federal Bureau of Investigation (FBI)

    Tether Addresses Crypto-Terrorism Allegations

    This move comes in response to an October 26 letter written by Senator Cynthia M. Lummis and Congressman J. French Hill to U.S. Attorney General Merrick Garland. It accused Binance and Tether of aiding in crypto-funded terrorism by violating sanctions laws and the Bank Secrecy Act.

    It further alleged that these entities did not perform sufficient screenings despite knowing that extremist groups were using their stablecoins for terrorist and other illicit purposes.

    In a statement, Ardoino emphasized Tether’s commitment: “Tether remains steadfast in its commitment to supporting law enforcement efforts and aiding victims in their recovery. We condemn the misuse of USDT or any cryptocurrency for illicit purposes and are fully committed to collaborating with global law enforcement agencies.”

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    Wayne Jones

    Source link

  • Is Tether Becoming America’s Defacto CBDC? Crypto Experts Weigh In

    Is Tether Becoming America’s Defacto CBDC? Crypto Experts Weigh In

    Crypto industry experts have been discussing Tether and its potential to become the dollar-pegged defacto central bank digital currency of the world.

    The comments come in response to Cantor Fitzgerald CEO Howard Lutnick, who told CNBC earlier this week:

    “I’m a big fan of this stablecoin called Tether…I hold their treasuries. So I keep their treasuries, and they have a lot of treasuries. They’re over $90 billion now, so I’m a big fan of Tether.”

    Cantor Fitzgerald is a global investment bank, brokerage, and financial services firm.

    Is Tether Like a CBDC?

    On Dec. 13, Glassnode on-chain analyst “Checkɱate” declared, “Tether is the CBDC.”

    He added that if the US government can shut down Russia’s reserves, it is “hard to argue they are incapable of closing down Tether’s.”

    “Most probable reality is the USG just found an infinite bid for treasuries, exactly when they need a bailout from an unsustainable fiscal situation.”

    He believes the developing world is “dollarizing” as their fiat currencies collapse. As a result, USDT is objectively better than pesos, bolivars, and lira. “Emerging markets essentially fund US retirements, healthcare, military escapades, and gov largess,” he added before concluding:

    “Ironically, this is a win-win scenario for both parties.”

    Bitcoin ESG evangelist David Batten pointed out several key differences between Tether and a CBDC.

    He noted that CBDCs don’t invest millions into green BTC mining, get Bitcoin into University education programs, or partner with a Bitcoin city (Lugano).

    The comments come in response to former portfolio manager Travis Kling who reminded his followers that “Tether is in business because the US govt is cool with that.”

    “Tether is completely beholden to US regulators. If the US govt ever changes its mind for some reason, Tether would be gone the next day.”

    Additionally, there has been a lot of opposition in the US to a Federal Reserve-controlled CBDC.

    Tether Distancing From Uncle Sam

    However, the firm has been distancing itself from Uncle Sam due to the ongoing war on crypto. Furthermore, it is now the stablecoin of choice for the rest of the world.

    Last week, General Partner at Dragonfly, Rob Hadick, commented on the divergence between USDT and USDC supplies and trading volumes.

    “Traders outside of the regulated US/UK firms and increasingly retail in emerging markets are actually using USDT as a mechanism to transact.”

    Tether’s market cap has surged to a record $90 billion, while Circle’s has slumped to around $24 billion. Tether now commands around 70% of the stablecoin market share, whereas Circle’s share has declined to just 18%.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    Martin Young

    Source link

  • Swiss City Lugano Now Accepts Bitcoin and Tether for Municipal Taxes

    Swiss City Lugano Now Accepts Bitcoin and Tether for Municipal Taxes

    On December 5, 2023, Lugano, a Swiss City, announced the incorporation of the cryptocurrencies Bitcoin (BTC) and Tether (USDT) for tax and other municipal fee payments.

    This makes part of Lugano’s collaborative plans with Tether, Plan B, fashioned to revitalize the City’s financial system using Bitcoin tech.

    Lugano Dives into the World of Crypto

    Before the latest developments, Lugano only allowed crypto payments to be made directly on the City’s official online portal. However, the release extends the possibility to every invoice, regardless of the nature or amount.

    According to the statement, Lugano citizens and companies can now pay their expenses by scanning the invoice QR code and leveraging their favorite mobile wallets. The two assets accepted based on the statement are Bitcoin (BTC) and Tether (USDT), behemoths in their respective asset classes.

    The statement by Bitcoin Suisse notes that the latest update is part of Lugano’s Plan B, a collaboration with Tether, to integrate BTC into daily life.

    This release also points out the role of Bitcoin Suisse in Lugano’s Plan B. Bitcoin Suisse will handle the technical part of the payment solution to offer a convenient option for accepting payments with BTC and USDT.

    The Chief Product Officer at Bitcoin Suisse, Armin Schmid, expresses his delight in backing Lugano in its mission to accelerate the use of Blockchain tech. He said:

    “It is great to see that more and more Swiss municipalities are offering payments in cryptocurrencies as an option available to both citizens and companies, complementing traditional payment methods such as post-office counters and e-banking platforms.”

    Bitcoin Suisse stresses its pleasure in providing technical infrastructure for crypto payments. Moreover, it boasts of providing crypto payments to other Swiss Cantons, municipalities, and cities.

    Switzerland Going All-In with Crypto

    Lugano is not the first Swiss City to take this path. As early as 2021, Zug City had already begun accepting Bitcoin and Ethereum for tax settlements. The Canton of Zug and the municipality of Zermatt have already implemented the system.

    Switzerland has been ahead of the curve in adopting crypto assets for some time.

    Last month, one of the largest Swiss cantonal banks, St. Galler Kantonalbank, announced the official dawn of Bitcoin and Ethereum trading and custody services for several clients.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    Wayne Jones

    Source link

  • Tether's (USDT) Market Cap Peaks at $90 Billion Amid Renewed Confidence

    Tether's (USDT) Market Cap Peaks at $90 Billion Amid Renewed Confidence

    Tether (USDT) – the largest stablecoin globally, has experienced continuous growth in its market capitalization, reaching an all-time high of $90 billion on December 6th before retreating слигхтлъ to $89.9 billion. This surge suggests a renewed trust in the crypto market despite facing regulatory hostilities.

    Over the last month, the market cap has increased by around 6%, bringing the year-to-date growth to over 35% from a modest $66.24 billion, demonstrating its capacity to navigate market volatility and restore investor faith.

    The growth also signified an improvement in liquidity in the market with an influx of additional capital into the ecosystem.

    State of Stablecoins

    Following major incidents such as the Luna collapse in June 2022 and the Silicon Valley Bank (SVB) crisis in March, there was a significant decrease in the overall supply of stablecoins, signaling a lack of confidence in the market.

    However, from October 2023 onwards, there has been a consistent increase in the total stablecoin supply, indicating a positive shift. This upward trajectory serves as an early indicator of enhanced on-chain liquidity, suggesting a scenario where more capital is ready for deployment, according to the latest CoinMetrics report.

    USDC – the widely used stablecoin in decentralized finance (DeFi) applications – experienced a notable portion of its supply residing in smart contracts, reaching a peak of over $20 billion in March 2022. However, throughout the year, this figure slashed by half from its peak of $14 billion in March to $7 billion by December 2023.

    In contrast, Tether (on Ethereum), primarily held in externally owned accounts (EOAs), has demonstrated a different trajectory. Its involvement in smart contracts has expanded, increasing from $4 billion at the beginning of the year to surpass $6 billion.

    The report also found that the number of addresses holding greater than $100k USDC has declined to 13k addresses, while those for USDT on Ethereum remain relatively stable.

    But USDT on the Tron network has a completely different story. Tether on Tron witnessed a steady growth in adoption, with nearly 40k addresses holding greater than $100k. Such a trend can be attributed to its cheaper transaction fees and potentially increasing use in developing economies across parts of Latin America, Africa, and Asia.

    Spot Trading Volume

    There has been a significant uptick in stablecoin spot trading volumes, highlighting their utility as a quote asset on both centralized and decentralized platforms. CoinMetrics found that USDT continues to dominate the trusted spot volumes, reaching $18.8 billion on November 15th.

    These volumes rank second only to those observed during significant market events such as the Terra, FTX, and SVB collapse.

    USDC volumes have also recently surged, reaching $2.5 billion in November – a record high in USDC trading volume.

    In contrast, the volumes for other stablecoins have declined, primarily due to the reduction in BUSD volumes, which Binance announced it would cease supporting this month.

    Overall, the upward trend in volume signifies a growing interest among traders and investors in gaining exposure to crypto assets with the potential for appreciation, particularly as the broader crypto markets are experiencing an upswing.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    Chayanika Deka

    Source link

  • Tether's Bitcoin Strategy Pays Off Big: $1.1 Billion Profit Amid Price Surge

    Tether's Bitcoin Strategy Pays Off Big: $1.1 Billion Profit Amid Price Surge

    In a week that saw Bitcoin surging to an impressive $42,000, Tether, the company behind the world’s largest stablecoin, witnessed a substantial increase in the value of its BTC holdings, resulting in a staggering unrealized profit of over $1 billion.

    Since May 2023, Tether has amassed 4,083 BTC.

    Tether’s Bitcoin Holdings Soar

    According to data compiled by crypto analyst EmberCN, Tether currently holds an impressive 57,576 BTC, equivalent to approximately $2.4 billion. The average purchase price per Bitcoin stands at $22,480, indicating an 85% increase in value. This essentially translated to a $1.1 billion unrealized profit since the acquisition of these assets.

    The primary driver behind Tether’s substantial unrealized profit is the recent surge in Bitcoin’s price. The flagship asset briefly crossed the $42,000 mark this week before settling at its current price of $41,700, marking a notable 13.1% increase in the past seven days.

    Tether’s Bitcoin holdings can be divided into two categories: firstly, 53,492 BTC were set aside before March of this year; secondly, a strategic move was made in May 2023, wherein Tether committed to allocating up to 15% of its net realized profits continually into Bitcoin.

    Despite the volatility concerns of Bitcoin, Tether views it as a resilient, long-term investment. This decision aligns with the stablecoin’s overarching strategy to expand its portfolio beyond conventional assets such as cash and cash equivalents.

    Tether had previously clarified that the aim is to keep the Bitcoin portfolio value well below the size of the company’s total excess reserves, which accounted for $2.48 billion at the end of the first quarter of 2023, while BTC holdings accounted for $1.5 billion.

    Tether’s Paolo Ardoino then stated,

    “The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset. Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential. Its limited supply, decentralized nature, and widespread adoption have positioned Bitcoin as a favored choice among institutional and retail investors alike.”

    Tapping the Bitcoin Mining Sector

    In addition to boosting its Bitcoin holdings, Tether also doubled down on plans to inject more funds into Bitcoin mining as part of its expansion plans.

    Last month, the firm announced a cash surplus exceeding $3 billion in its attestation report with plans to dedicate $500 million to Bitcoin mining activities within the next six months.

    This allocation will be directed toward establishing Tether’s Bitcoin mining facilities and investing in pre-existing BTC mining enterprises. This includes a recent provision of a $609 million debt financing facility to the European Bitcoin miner, Northern Data Group, as part of Tether’s strategic initiatives.

    SPECIAL OFFER (Sponsored)

    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    Chayanika Deka

    Source link