Market maker Cumberland may have bought the dip as data showed the company moved millions of Tether stablecoins to centralized exchanges.
Since August 6, Cumberland has sent over $1 billion in Tether (USDT) to CEX platforms like Binance, Coinbase, and Kraken, according to LookOnChain. Data.
Market makers provide liquidity in financial ecosystems and sometimes adopt a strategy of pooling assets to protect profits or revenues. The Cumberland Exchange deposit wave began after the global market crash on August 5, when Bitcoin (BTC) fell below $50,000 and the total cryptocurrency market fell to $1.8 trillion.
Crypto prices have since recovered some of their losses, with Bitcoin (BTC) trading above $61,000 as of this writing. According to TradingView, the overall crypto market is up 12% in the past week. This rise suggests that Cumberland may actually be in the market if the market maker uses its $1 billion USDT to buy a basket of cryptocurrencies.
Meanwhile, stablecoin issuer Tether continued its minting spree. The payments company created $1 billion in new USDT tokens on Ethereum (ETH), bringing its total raised over the year to over $32 billion.
The stablecoin pool has surpassed $160 billion in market cap, but companies are paying pennies to issue new tokens for trading. Arkham confirmed that Tether paid less than $1 in on-chain fees for its most recent Ethereum restock.