The supply of Tether (USDT) begins to increase again after three consecutive months of deep decline

The world’s largest stablecoin Tether (USDT) has expanded its circulating supply after nearly three months of continuous decline, which could be a sign that the crypto market is slowly recovering.

Since July 28, Tether has started to have USDT “injections” back into the market, increasing the USDT capitalization by 0.7%, about more than 500 million USD. There are currently 66.3 billion USDT in circulation. This gives Tether a total market share of around 43% in the industry.

The supply of Tether reached an all-time high in early May 2022 with a market capitalization of up to $83 billion. However, after the collapse of the Terra ecosystem, combined with the widespread liquidity crisis that caused a series of crypto companies in the lending field to fall into bankruptcy, the supply of Tether has decreased by 21% to the current level. as low as 65.8 billion at the end of July 2022.

It is for this same reason that has once again “triggered” Tether’s legal troubles and “shady” business activities in the past, so many investment funds are said to have increased their bets on Tether. their short position in USDT recently.

This has allowed rival firm Circle to increase its USDC stablecoin market share, which currently accounts for 36% with a $54.5 billion market cap.

Last month, USDC volume on Ethereum actually surpassed USDT during a period of time when Circle continuously made amazing developments, such as its readiness to publish a detailed USDC margin report after the “storm” FUD”, deploys USDC to Polygon for Web3 payments and launches euro-backed stablecoin.

In addition, a good news appeared over the weekend when referring to the stablecoin sector, Binance CEO Changpeng Zhao commented on the situation that current investors are ready to re-enter the market, with the following statement:

“3 of the top 10 cryptocurrencies are stablecoins, which means a lot of fiat is waiting for traders to come back. If people want to get out of the industry, they won’t hold stablecoins for anything.”

In fact, a cost-of-living crisis caused by rising global inflation may have curbed crypto investment and speculation among retail traders.

However, people living in countries with peak inflation, such as Argentina, have used stablecoins as a “salvage” solution for their domestic currency. The proof is that there has just been a transfer of football players traded in USDC between an Argentinian and Brazilian team.

Synthetic CHK

Maybe you are interested: