The number of Tether (USDT) on the market is rising again after a decline over the past three months. This may be a cautious signal that the demand for crypto-currencies is on the rise again. Tether is the largest stablecoin on the market. It is a means for traders to get in and out of crypto currencies.
In recent days, the stock of USDT has been steadily expanded by Tether Inc, the company behind the stablecoin. It concerns an expansion of USD 500 million, approximately 0.7% of the existing stock of tethers.
According to the latest Tether Transparency Report, there is now 66.3 billion USDT in circulation. This gives the stablecoin a 43% share of the stablecoin market. The supply reached a record high at the beginning of May this year when it exceeded 83 billion USDT. But among other things, the collapse of the Terra ecosystem, and other loss-making companies such as Celsius, the decision was made to reduce the supply. The end of July marked a low of USDT 65.8 billion.
As a result, competitor Circle managed to increase the market share of its stablecoin USDC. With a 36% share and a total market cap of $54.5 billion.
Binance CEO Changpeng Zhao is quite bullish about the addition of more stablecoins. It means there is more dry powder on the sidelines to put into cryptocurrencies.
Stablecoins represent around 13.6% of the total crypto market, historically a fairly high level. In certain countries, stablecoins, which continue to be backed by the dollar, are a better means of storage than the local currency. These are particularly high-inflation countries such as Argentina.