Tether, the company that manages the issuance of USDT, the largest stablecoin of the crypto market, has announced a shift in its focus on providing support to blockchains based on community interest. The company announced it would stop minting USDT tokens in two blockchains, Eos and Algorand, starting June 24. Tether Announces Change to Community-Driven […]
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Tron’s USDT Triumphs: Daily Volume Climbs Above $53 Billion, Dwarfing Visa
USDT, Tether’s digital token pegged to traditional currencies, is leading a quiet revolution in the world of finance. In a landmark development, USDT has surpassed Visa’s average daily transaction volume on the Tron blockchain, underscoring its position as the undisputed leader in the stablecoin space. This surge signifies a growing confidence in stablecoins and their potential to disrupt the financial landscape.
USDT Flexes Muscles
USDT’s dominance is evident. Available on multiple blockchains, it has seen its market cap explode since its inception in 2014. But the recent milestone on Tron, a blockchain known for its lower transaction fees, is particularly noteworthy. Lookonchain data reveals USDT transactions on Tron hitting a staggering billion in a single day, exceeding Visa’s daily average of billion. This 20% lead underscores the increasing adoption of stablecoins for everyday transactions.
The 24-hour trading volume of $USDT on #TronNetwork is B, exceeding Visa’s average daily trading volume.
Visa’s trading volume in Q1 2024 was .78T and the average daily trading volume was B. pic.twitter.com/jolGKIUcxE
— Lookonchain (@lookonchain) June 21, 2024
Why The Rise Of Stablecoins?
So, what’s driving this surge? Unlike traditional cryptocurrencies known for their wild price swings, stablecoins offer a haven of stability. They are typically pegged to fiat currencies like the US dollar, meaning their value remains relatively constant. This stability makes them ideal for everyday transactions, eliminating the fear of sudden price drops that plague traditional cryptocurrencies. Additionally, stablecoins leverage the power of blockchain technology, enabling faster, cheaper, and more transparent transactions compared to conventional systems.
Regulation On The Horizon
As stablecoins gain traction, governments are scrambling to establish regulatory frameworks. The Lummis-Gillibrand Payment Stablecoin Act in the US and similar initiatives in the UK highlight a global concern for ensuring user protection and financial stability in the face of this innovation. While these regulations are crucial for responsible growth, navigating the ever-changing political climate adds another layer of complexity. For instance, the UK’s crypto policy remains uncertain with a looming general election.
The Future Of Finance
Despite the challenges, the momentum behind stablecoins seems unstoppable. Their ability to bridge the gap between traditional finance and the crypto world offers undeniable advantages. While daily transaction volume can be volatile, and concerns like rising transaction fees on Tron need to be addressed, the overall trend is clear.
Stablecoins are here to stay, and their impact on the global financial system is likely to be profound. As regulations take shape and the technology matures, stablecoins have the potential to revolutionize the way we conduct everyday transactions, ushering in a new era of financial inclusion and efficiency.
Featured image from Pexels, chart from TradingView
TON Foundation Announces Plans to Widen Access to USDT on Ton
The TON Foundation has announced a partnership with Tether to broaden the access of global crypto communities to USDT on the TON blockchain. The foundation has outlined plans to integrate TON-based USDT into at least a hundred exchanges and payment processors in both established and emerging markets in the coming months. TON Foundation and Tether […]
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Analyzing Tether’s 111 Billion Supply: Top USDT Wallets on Tron and Ethereum
This year, the supply of the stablecoin tether has surpassed the 0 billion mark, and today, the leading dollar-pegged token boasts a market valuation of 1.9 billion. The majority of this supply resides on Tron, with the network hosting billion in tethers, while Ethereum accounts for billion. This editorial examines the top wallets […]
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Non-Empty USDC And USDT Wallets See 13.9% And 15.7% Spike, Why This Is Good For Crypto
Non-empty wallets for stablecoins such as Circle’s USDC and Tether’s USDT have been on the rise for a while now as crypto prices have recovered since the start of the year. This has come to a head as the non-empty wallets have grown double-digits in a very short time. While this could point to recent selling, it is also quite bullish for crypto going by historical performances.
Non-Empty USDT And USDC Wallets Jump 13.9%
According to the on-chain data tracking platform Santiment, there has been a significant shift in the number of crypto wallets that are holding stablecoins on their balances. This growth is mostly seen in stablecoins such as Tether’s USDT and Circle’s USDC.
As Santiment’s data shows, the total number of non-empty wallets holding USDC has risen 13.9% so far in 2024. Likewise, USDT wallets have also been on the rise, with a marked 15.7% increase in non-empty wallets in the same time period.
The chart shows a steady increase in the number of these non-zero wallets as the price of Bitcoin had recovered, taking the whole crypto market along with it. The total among of USDT holders moved from around 4.5 million at the start of the year to 5.7 million at the time of the report. For USDC, this figure went from around 1.9 million to more than 2.15 million. In total, there are more than 7.85 million stablcoin wallets between the both of them.
Concerned about another #crypto market retrace? You may be comforted by the fact that the amount of non-empty #stablecoin wallets are rising. In 2024, the amount of #USDCoin non-empty wallets has grown by +13.9%, and #Tether wallets have grown +15.7%. https://t.co/9K2y8UgOv9 pic.twitter.com/mxdkrgn36M
— Santiment (@santimentfeed) May 23, 2024
Now, given the recent uptick in the number of non-zero stablecoin wallets, it could suggest there has been some selling. However, stablecoins have seen their market caps increase drastically as more coins have been minted, suggesting that investors are looking to buy rather than sell.
Rising Stablecoin Wallets Is Good For Crypto
The rise in the non-zero stablecoin wallets are good for crypto, especially in the event of a retrace, as the on-chain tracker points out. This is because investors usually keep their funds in stablecoins waiting for good opportunities to buy, and during market retrace, they tend to deploy stablecoins such as USDT and USDC to buy other assets for low prices.
A correlation can be seen between the rising Bitcoin and crypto prices this year and the rising stablecoin market cap. For example, the USDT market cap went from billion to over 1 billion since January, signifying a 20% increase. In the same vein, the USDC market cap went from billion in January to over billion in May, representing a 32% increase for the stablecoin.
In the last 24 hours alone, over 0 million was moved from the USDC treasury in two transactions into unknown wallets, suggesting that crypto investors are getting ready to get into the market.
Kraken Insists It Will Keep USDT Listed in European Markets
Kraken, a U.S.-based cryptocurrency exchange, insists it will keep USDT listed in European markets as long as regulations regarding stablecoins are not finalized. Mark Greenberg, Global Head of Kraken’s Asset Growth and Management Business, clarified they will “continue to look at all options to offer USDT under the upcoming regime.” Kraken Will Keep Tether’s USDT […]
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Tether Adds Fresh $1 Billion USDT To Supply – Bitcoin To Rally Again?
According to data from CoinMarketCap, Bitcoin rose by 2.9% on Friday to trade above ,000 for the first time since April 24. This positive price performance by the maiden cryptocurrency has been attributed to the low inflation levels reported in the latest Consumer Price Index (CPI) data.
However, Bitcoin is an asset subject to the influence of several forces. According to a report by blockchain analysis platform LookonChain, BTC may soon experience another price rally following an increase in the supply of a specific stablecoin.
Can USDT Replicate Surging Effect On Bitcoin?
In an X post on Friday, LookonChain reported that the Tether Treasury has minted an additional 1 billion USDT indicating a consistent rising demand for the stablecoin. USDT which ranks as the third largest cryptocurrency doubles as the most dominant stablecoin in the crypto space with a market cap value of 1.25 billion.
The USDT token has famously recorded much growth in the last year with over 31 billion new tokens minted on the Tron and Ethereum network. Interestingly, LookonChain reveals that this rise in USDT market share contributed significantly to Bitcoin’s ascent from ,000 to ,000 in the past fifteen months.
The theory behind this relationship stems from an increase in traders’ liquidity provided by investments in USDT. This increased market liquidity can alter the status of Bitcoin’s supply and demand and oftentimes lead to a rise in BTC’s price.
Following the most recent 1 billion USDT minted by the Tether Treasury, most investors and spectators could be expecting a similar boosting effect on Bitcoin’s price, especially with the crypto bull season in play.
However, Bitcoin’s price in the coming months is still likely to be influenced by other factors such as the BTC spot exchange-traded fund (ETF) market. According to data from SoSoValue, net inflows on Friday reached 7.01 million bringing the total value of the Bitcoin spot ETF market to .58 billion. As more major traditional finance players gain a piece of this novel market, Bitcoin is expected to experience monumental levels of demand which will translate into weighty price gains.
BTC Price Overview
At the time of writing, Bitcoin was trading at ,853, reflecting a 9.64% gain in the last week. The crypto market leader is currently in a consolidation state as it gathers momentum to break past the 67,000 resistance zone.
Bitcoin is likely to remain the “diamond” of the crypto bull season for many investors based on historical price data. However, there remains a need for proper research by all investors and traders before engaging the market.
Tether CEO and Ripple CEO Clash Over USDT — Brad Garlinghouse Says ‘I Wasn’t Attacking Tether’
Tether CEO Paolo Ardoino has responded to remarks made by Ripple CEO Brad Garlinghouse, branding him as an “uninformed CEO” and accusing him of fostering uncertainty about stablecoin USDT amid a U.S. Securities and Exchange Commission (SEC) investigation into his company. In reply, Garlinghouse clarified that his comments were not an attack on Tether but […]
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Cartier Family Member Indicted for Using USDT to Launder Hundreds of Millions in Drug Trafficking Money
Maximilien De Hoop Cartier, a descendant of the family famous for their French luxury goods Cartier, has been indicted for his participation in a network that allegedly used several shell companies to launder drug trafficking money proceeds using USDT. Cartier and five Colombian individuals allegedly conspired to directly launder .5 million and used these shell […]
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USDT Stablecoin Supply on TON Blockchain Hits 130 Million in 2 Weeks
Since the introduction of USDT on the TON blockchain, the supply of this stablecoin has grown by over 70 million within just two weeks, totaling 130 million. While USDT operates across multiple blockchains, its presence on TON has positioned it as the eighth largest in terms of circulating supply. TON Blockchain Sees 70 Million Increase […]
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