On August 13, the amount of Tether in circulation on cryptocurrency platforms reached a new high of 20.339 billion USDT.
This suggests that buyers might be getting ready for big market moves before the September rate decision by the U.S. Federal Reserve. At the same time that stablecoin funds are increasing, the Tether Treasury is making an extra $1 billion USDT. This shows that there is a lot of demand in the market.
While the stablecoin was being created, $1 billion was made. This made Tether more valuable on all platforms. Whale Alert said the deal was made on the Ethereum network on August 13. This $1 billion deal was made clear by Paolo Ardoino, CEO of Tether.
He said it was an “inventory replenishment,” meaning that the tokens have been accepted but have not yet been sent out. These reserves are kept in case people want to request tokens or chain swaps in the future. This makes sure that Tether has cash on hand all the time.
You buy stock to meet future demand without having too much on hand. This process is similar to restocking your shelves. In the same way, Tether’s plan lets it keep the supply under control without adding too many new USDT tokens to the market.
This page from Tether says that as of August 14, $941.72 million USDT is still “authorized but not issued” on Ethereum. However, around 60 million USDT from the most recent mint has already been used. This shows that there is a high demand in the market.
Tether Balances Surge Amid Market Uncertainty And Bullish Signals
Tether’s exchange amounts have gone up during both downturns and bull markets. When the market goes down, people who want to feel safer often switch from risky cryptocurrencies to stablecoins like USDT.
When markets are going up, on the other hand, an increase in USDT could mean that traders are getting ready to buy crypto assets when prices are low with these stablecoins.
Given recent market action, it may be best to take a bullish view. Lookonchain data shows that on August 13, the Tether Treasury sent $141.50 million USDT to Cumberland, a business that trades cryptocurrencies.
He then sent the money to big platforms like Kraken, Binance, and Coinbase. Cumberland has sent $1.08 billion in USDT to different markets over the last week. This makes it seem like big investors may be getting ready for market instability that the Fed’s upcoming rate decision could cause.
It’s being said more and more that the Federal Reserve could cut rates at its meeting in September. This might make people feel good about the Bitcoin market. Based on data from CME, there is a good chance that the rate will go down.Β
In a new study, Markus Thielen, head researcher at 10x Research, said that Tether and Circle shared almost $2.8 billion last week. This proves that big buyers may be adding more cash to the cryptocurrency market if things get better.
Record-high Tether balances on platforms show that traders and businesses are ready to act while the market waits for the Fed to decide. If the rate cut goes through, the coin market might go up a lot.
