Bitcoin scores new highs, while a lot of new money is pouring into the market through stablecoins
According to official transparency data provided by Tether, USDT’s market cap exceeded the $17 billion mark for the first time, reaching total assets above this figure.
In 2020, Tether’s market capitalisation grew exponentially. In mid-September, Tether’s market cap increased almost fourfold since the beginning of the year, from around $4 billion to over $15 billion.
According to data from crypto analysis firm Messari, USDT has seen significant growth from August 2020 to date. As a result, the currency has added over $5 billion to its market cap over the past three months.
Tether (USDT), the largest stablecoin in the Crypto Bank, is seeing a huge inflow into its market capitalisation, and is probably feeding the current bullish Bitcoin (BTC) trend.
According to Ki Young-Ju, CEO of the CryptoQuant data aggregator, the recent positive movement in the industry is attributable to the increasing number of stablecoin deposits such as USDT. On 5 November, he commented:
„Once again, the price of $BTC has risen immediately after the increase in stablecoin deposits.“
Ki Young-Ju had already drawn attention to this correlation in October, pointing out that the influx of stablecoin deposits was „useful in predicting BTC’s rise at the end of July“.
In addition, CryptoQuant data shows that stablecoin inflows reached new highs for 2020 on 18 October, recording more than 60,000 transactions. Since then, however, this figure has declined to around 30,000 in the last few days of October.