USDT reclaims peg, regains its footing
- Tether’s transaction volume surged to the highest level in three months.
- USDT reclaimed peg as exchange netflow spiked.
In the past week, Tether [USDT] experienced a turbulent event that caused it to deviate from its pegged value. However, according to the latest data, regular transactions appear to have regained their stability, as the stablecoin achieved an all-time high.
USDT sees more volume
In a recent report by Glassnode Alert on 19 June, USDT made a remarkable milestone by achieving a record-breaking transaction volume. According to the accompanying chart, the average transaction volume peaked at approximately 50,975 USDT.
This level marked the highest level seen in the past three months. However, as of this writing, the transaction volume experienced further growth, surpassing 52,904 USDT.
This new level set yet another record high and hinted at the potential for a continued upward trend.
This surge in transaction volume followed a period during which USDT’s value dipped below its intended peg of $1. Nonetheless, as of this writing, USDT had reclaimed its peg.
Also, the metric’s significant increase signified the resumption of active trading and user engagement with the stablecoin.
Market cap remains unfazed
Based on the latest data provided by Coinmarketcap, USDT continued to hold its position as the third-largest asset in the cryptocurrency market, trailing only behind Bitcoin [BTC] and Ethereum [ETH]. As of this writing, its market capitalization exceeded $83 billion.
Additionally, USDT boasted of a strong 24-hour trading volume, surpassing $14 billion. Furthermore, it maintained its dominant position as the largest stablecoin in market capitalization, as confirmed by Coinmarketcap.
More positive USDT exchange flow persists
USDT‘s 18 June exchange netflow revealed a notable surge in inflows, surpassing $70,000. This sudden influx of the stablecoin’s supply could potentially signal a forthcoming uptick in the prices of other, more volatile digital assets.
According to a post shared by CryptoQuant, there is often an inverse relationship between the flow of stablecoins and that of other cryptocurrencies. In simpler terms, when stablecoin inflows rise, it is typically associated with decreased inflows or outflows of other crypto assets.
This phenomenon suggests that investors may be acquiring stablecoins to prepare for or take advantage of potential price movements in the broader crypto market.