- Tether increases USDT’s circulating supply to historic highs.
- USDT volumes are not quite there yet but positive address growth continues.
Tether’s USDT has been the top stablecoin by marketcap for quite some time. It might maintain this lead judging by its latest announcements which highlight more marketcap growth.
USDT’s marketcap has been on an upward trajectory this year and recently crossed an important level. However, the reason why its marketcap growth is so noteworthy now is because it surpassed its previous all-time high achieved in 2022. According to IntoTheBlock’s assessment, USDT’s marketcap is up by roughly 30% on a year-to-date basis.
Tether’s supply and market capitalization have hit new highs this month, approaching the noteworthy $84B benchmark. The circulating supply of USDT is up nearly 30% year-to-date#Tether #Stablecoin #USDT pic.twitter.com/BPugfiZZl4
— IntoTheBlock (@intotheblock) July 28, 2023
From a number’s perspective, USDT’s marketcap peaked at $83.83 billion on 21 July. A significantly higher amount than its 2022 peak slightly above the $83.20 billion level. Here’s what that looks like on the charts.
Source: Santiment
Marketcap growth usually reflects on the price performance for most digital assets under normal circumstances. It is different for stablecoins because their prices are fixed. Nevertheless, it still represented the amount of capital worth, or the amount worth of the stablecoin that is available.
The implication is that USDT’s marketcap growth will allow Tether to serve more people in line with growing demand.
Is USDT’s marketcap growth a sign of the times?
Some may consider USDT’s growing marketcap as a sign that the market is improving. However, this is not necessarily a sign of an incoming bullish move. But perhaps that might be a half-truth because marektcap growth implies that Tether is preparing for more demand.
A look at some of USDT’s metrics may provide some clues as to what is going on in terms of demand. Stablecoins are used as mediums for accessing cryptocurrencies. As such, a surge in volume could indicate more on-chain activity as well as potentially more demand. However, that is not the case because Bitcoin’s transfer volume has been oscillating near its six-month bottom range.
Source: Glassnode
USDT exchange volumes have also tanked considerably compared to their peaks in the last six months. But, there is one key metric that underscores USDT’s current state and that is the total number of addresses. The latter has been on an upward trajectory, which means the stablecoin is also experiencing growth in terms of user numbers.
A potential reason for the above observation could be Tether’s growing suite of products. A great example of that is Tether Gold which is pegged on the value of gold. Such products have been supporting USDT transactions.
