After Tether (USDT) went back to the exchanges, has the setback triggered? Appeared first on Coinpedia – Fintech & Cryptocurrency News Media| crypto guide
Tether or commonly known as USDT is facing a tough day as the asset is losing the confidence of traders. Stablecoins have seen a sharp drop in activity ever since the liquidity crisis triggered a major phase in recent days. On the other hand, another stablecoin, USD Coin (USDC) quickly broke into the top 10 and is on the verge of surpassing USDT any time from now.
Therefore, it would not be unreasonable to quote that USDT is losing its dominance from USDC as more and more traders are shifting their focus from USDT to USDC. Since the start of the current month, there has been a surge in addresses without USDT or ZERO USDT. This means traders’ confidence has waned as USDT was once considered a safe haven at a time of huge volatility in the space.
Additionally, it appears that whales have given up a substantial portion of their USDT holdings. Addresses holding USDT within the range of $100K to $10M have registered a major decline registering a 3-year low in terms of supply.
On the other hand, the supply on the exchanges is increasing. While USDT reserves on exchanges stood at around 8 billion since the beginning of the year 2022, after the stablecoin lost its peg in May, the reserves began to increase drastically. Currently, the supply on the exchange has reached its peak of 13.14 billion, which is expected to keep increasing until new highs are reached.
Top crypto exchange Binance, which holds over 2 billion USDT tokens, has also seen huge inflows over the past month. The platform has registered an inflow of around 560 million in the last 30 days and more than 313 million in the last 7 days only.
Overall, Tether (USDT) dominance has shaken a bit as on-chain balances are shrinking substantially. Conversely, USDC is set to continue to offer stiff competition for the top stablecoin and may even pull it off in the coming days.