Since 2017, whenever the cryptocurrencyย market suffered a bearish period, cryptocurrency users had a choice to either cash out or transform their coins and cryptoย tokens into cryptoย stablecoins like Tetherย (USDT) (USDT). Thanks to the fact that USD backs USDT, itsย value is fixed, so it does not get influenced by the volatility of the bear and bull markets.
Over the years, numerous more cryptoย stablecoins were launched, but regardlessย of its past controversies, Tetherย (USDT) never lost its dominance. Even now, in 2023, the prolonged bearish cryptocurrencyย market is pushing users toward USDT while other digitalย currencies trade in the red. Inย reality, the demand has been so great that Tetherย (USDT) had to increase its supply, which hit $83.5 Billion earlier this week.
This made its total supply near its record-breakingย peak of $84.1 billion. Tetherย (USDT) previously achievedย this level aย yearย ago, in 2022, while the cryptocurrency winter was at its strongest point.
1/ ๐ The total supply of $USDT has reached a staggering $83.5 billion! ๐ฒ
|Thatโs nextย to the record-breakingย peak of $84.1 Billion recorded aย yearย ago.
Letโs dive into why #Tether is making a comeback amidst a sluggish market. #USDT #cryptocurrency pic.twitter.com/Bauu3HbVdb
โ Trade Coin Chien Luoc | TCCL ๐ณ (@TCCLCommunity) May 24, 2023
USDT supply is near its ATH
After an initial price recovery in early 2023, the cryptocurrencyย market entered a sleepy period, which caused USDT to perform much better than the rest of the market.
Interestingly, the projectโs supply previously reached its ATH almost exactly lastย year, on May 10th 2022. Reportsย by data from The Block, the project hit $83.5 Billion supply on Monday, May 20th, with only 10 days difference betwixt the two.
Tetherโsย (USDT) comeback happened owingย to the back fall of a somnolent market, which found itself under heavy pressure from macro headwinds and the constant regulatory uncertainty in the Unitedย States. During theย pastย few decline in trading activity and another fall of cryptocurrency prices when everyone hoped that the bear market has ended, users turned to cryptoย stablecoins toย guard the value of their investments.
Tetherย (USDT) grows while Circleโs USDC gets its supply cut in half
Tetherย (USDT) performed much better than other cryptoย stablecoins. Forย instance, its largest rival, USDC, saw a decline of its supply, going from $47 Billion to $27.8 billion. This impacted its rank, but inย theย end, it was great news for Tether.
2/ ๐ Althoughย while the market remains in a โslumberโ state owingย to macro pressures and regulatory uncertainty in the Unitedย States, Tetherย (USDT) has seen a resurgence. Onย theย otherย hand, hereโs an interesting twist: the supply of USDC, another cryptoย stablecoin, hasย dropped from nearly $47 Billion to just $27.8 billion! pic.twitter.com/Lft99INj1m
โ Trade Coin Chien Luoc | TCCL ๐ณ (@TCCLCommunity) May 24, 2023
Data provider Kaiko thinksย that the boost of USDT is not tied to an boostย in trading volumes. The company stated, โThe data doesnโt show any notable boostย in USDT market share (as measured by trade volume) relative to other cryptoย stablecoins inย theย previous few months, largely owingย to Binanceโs promotion of TUSD as an alternative to BUSD.โ
The company likewise pointedย outย that theย expansion of Tetherโsย (USDT) supply canย potentially be tied to offshore trading between market-making corporations and cryptocurrency whales. Kaiko pointedย outย that manyย of USDT was postedย on Tron, given its minimal Decentralizedย Finance activity. Further, the largest exchanges like Coinbaseย Cryptoย exchange doย not even support it. Inย theย meantime, offshore platforms like OKX and Bnance have the largest USDT balances on Tronโs network.
