Leading Stablecoin USDTs Total Supply Surges to $83.5 Billion Amid Bear Market

Leading Stablecoin USDTs Total Supply Surges to $83.5 Billion Amid Bear Market


As the prolonged bearish crypto market continues, Tether (USDT) remains dominant and has increased its supply to $83.5 billion, nearing its all-time high, while its largest rival, USDC, saw a decline in supply.

Since 2017, whenever the cryptocurrency market suffered a bearish period, cryptocurrency users had a choice to either cash out or transform their coins and crypto tokens into crypto stablecoins like Tether (USDT) (USDT). Thanks to the fact that USD backs USDT, its value is fixed, so it does not get influenced by the volatility of the bear and bull markets.

Over the years, numerous more crypto stablecoins were launched, but regardless of its past controversies, Tether (USDT) never lost its dominance. Even now, in 2023, the prolonged bearish cryptocurrency market is pushing users toward USDT while other digital currencies trade in the red. In reality, the demand has been so great that Tether (USDT) had to increase its supply, which hit $83.5 Billion earlier this week.

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This made its total supply near its record-breaking peak of $84.1 billion. Tether (USDT) previously achieved this level a year ago, in 2022, while the cryptocurrency winter was at its strongest point.

USDT supply is near its ATH

After an initial price recovery in early 2023, the cryptocurrency market entered a sleepy period, which caused USDT to perform much better than the rest of the market.

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Interestingly, the project’s supply previously reached its ATH almost exactly last year, on May 10th 2022. Reports by data from The Block, the project hit $83.5 Billion supply on Monday, May 20th, with only 10 days difference betwixt the two.

Tether’s (USDT) comeback happened owing to the back fall of a somnolent market, which found itself under heavy pressure from macro headwinds and the constant regulatory uncertainty in the United States. During the past few decline in trading activity and another fall of cryptocurrency prices when everyone hoped that the bear market has ended, users turned to crypto stablecoins to guard the value of their investments.

Tether (USDT) grows while Circle’s USDC gets its supply cut in half

Tether (USDT) performed much better than other crypto stablecoins. For instance, its largest rival, USDC, saw a decline of its supply, going from $47 Billion to $27.8 billion. This impacted its rank, but in the end, it was great news for Tether.

Data provider Kaiko thinks that the boost of USDT is not tied to an boost in trading volumes. The company stated, “The data doesn’t show any notable boost in USDT market share (as measured by trade volume) relative to other crypto stablecoins in the previous few months, largely owing to Binance’s promotion of TUSD as an alternative to BUSD.”

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The company likewise pointed out that the expansion of Tether’s (USDT) supply can potentially be tied to offshore trading between market-making corporations and cryptocurrency whales. Kaiko pointed out that many of USDT was posted on Tron, given its minimal Decentralized Finance activity. Further, the largest exchanges like Coinbase Crypto exchange do not even support it. In the meantime, offshore platforms like OKX and Bnance have the largest USDT balances on Tron’s network.



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