Tether restarts its “engine”. USDT supply is growing

The amount of the most popular stablecoin in the world has increased in circulation.

After an almost 3-month cut, Tether increased the USDT supply again. According to experts, this may be a sign that the virtual currency market is slowly recovering. The move raised the capitalization of this project by 0.7%. More than US $ 66.4 billion in USDT is currently in circulation, according to a report by the company controlling this project on Tether's transparency.

Tether cryptocurrency again ''starts the engine"

The amount of USDT coins available in circulation increased after nearly 3 months of reductions. According to analysts, this may be a signal that the cryptocurrency market is slowly returning to good shape.

According to the data available on the CoinMarketCap platform, the first breakout of new USDT after such a long break took place last Friday, and another three in the last days. However, it was not too large a "reprint" of this stablecoin.

The introduction of the additional USDT into circulation increased the market capitalization of this popular stablecoin by 0.7% - i.e. less than $ 500 million. On the other hand, on the official Tether website, we see that there are currently over $ 66.4 billion in circulation in this virtual currency.

It is worth recalling that the supply of Tether reached its record level at the beginning of May 2022. Then it exceeded the impressive 83 billion USDT. The unfavorable conditions, i.e. the panic of investors caused by the collapse of the Terra ecosystem and the 'plague' among companies focused on cryptocurrency services, led to a reduction in the supply of USDT in circulation by about 21%.

Rivals are seizing a market opportunity

While Tether somewhat suffered during the crypto winter, other stablecoin issuers decided to enter the competition. For example, Circle increased the market share of USD Coin (USDC). In July this year, the trading volume of this stablecoin on the Ethereum blockchain dominated USDT for some time.

The president of the largest cryptocurrency exchange - Changpeng Zhao recently announced that a large deck of fiat currency is waiting on the sidelines to re-enter the market. He noted that 3 projects from the first TOP 10 are stablecoins.

As it turns out, the so-called stable virtual currencies currently account for approximately 13.6% of the total capitalization of all cryptocurrencies. This result is close to the records in this respect.

Analysts also point out that some crypto asset users are buying stablecoins due to the inflation of their local currencies. In this way, they protect themselves with USD-based cryptocurrencies, while gaining additional benefits, including access to global markets.