As of June 1, $83.23 billion in USDT is in circulation, CoinMarketCap (CMC) data Offers.
In the past, there was a direct correlation between the circulating supply of Tether and rapid expansions in the price of bitcoin and cryptocurrency.
USDT supply is trading at record levels
The current spot prices and increased USDT trading suggest that the markets may follow a similar pattern as in the past.
USDT is a stablecoin pegged to the value of the US dollar, and is the largest reserve currency in the world.
The token, issued by Tether Holdings, is available on several blockchains, including Ethereum and Tron.
However, based on activity levels, more Tether tokens are being traded on the Ethereum and Tron networks. Tron is a smart contract platform and competitor to Ethereum.
Ethereum’s volatile fees and scalability issues have forced users to transact USDT on alternative platforms, mostly Tron.
As of June 1, more than 50% of USDT was circulating on Tron.
data on the string Offers That more than $46.1 billion in USDT was present in the form of TRC-20 in Tron. The total amount in Tron was distributed among 26,001,516 addresses that cumulatively recorded 2,272,188 transfers in the last 24 hours alone.
Meanwhile, there was $36.28 billion worth of USDT that corresponds to the ERC-20 standard on Ethereum. amount was distributed To 4,427,642 unique addresses it recorded a total of 188,122,012 transfers.
With a market capitalization of over $83.2 billion – and rising, USDT is the most dominant stablecoin.
The state of competing stablecoins
Trackers show that the second most liquid stablecoin, USDC, a token issued by Circle, has rolling supply From $28,853,137,492.
USDC, like USDT, is backed by fiat fees. However, unlike Tether, which is not formally audited by a top 4 firm like Deloitte, USDC is fully audited and issues a monthly certificate of its reserves.
Circle’s exposure to Silicon Valley Bank (SVB) briefly caused the USD to unwind against the greenback, dropping to $0.87 against the greenback.
Although USDC eventually resumed its peg, users chose to convert to other stablecoins, especially USDT and even Bitcoin. The depegging of the US dollar also coincided with the rally of Bitcoin and Ethereum from mid-March 2023.
On the other hand, BUSD, a stablecoin previously minted by Paxos, has a market cap From $5,167,197,461 as of June 1.
Changpeng Zhao, CEO of Binance, the world’s largest exchange that allowed Paxos to issue BUSD under its brand, He said Regulatory headwinds have been in favor of USDT.
He backed BUSD by stating that its market cap was limited to $25 billion after the New York Department of Financial Services (NYDFS) banned the creation of new BUSD in February 2023.
It is uncertain whether the recent surge in Tether use shows a predisposition to an upturn in the cryptocurrency market.
At the moment, the formation of Japanese candlesticks indicates that Bitcoin, Ethereum, and other top-ten crypto assets are under pressure, posting double-digit losses from April 2023 highs.
Featured image from Canva, chart from TradingView
