15:50Tether market cap surpasses $17 billion, fueling Bitcoin price rally
Bitcoin’s new highs come amid lots of new money pouring in via stablecoins.
Tether’s market cap has been growing exponentially in 2020. As of mid-September, Tether’s market cap had seen nearly a four-fold increase since the beginning of the year, surging above $15 billion from around $4 billion.
According to data from crypto analytics firm Messari, USDT saw a notable increase from August 2020 to date. As such, USDT added more than $5 billion in market cap over the past three months.
Tether (USDT), the largest stablecoin in the cryptocurrency market, is seeing a massive influx in its market capitalization, which is likely fueling the current Bitcoin (BTC) price rally.
Stablecoin market capitalization. Source: Messari
According to Ki Young-Ju, CEO of crypto data platform CryptoQuant, the latest crypto rally is being driven by an increased amount of deposits in stablecoins such as USDT. On Nov. 5, he pointed out:
Ki Young-Ju previously drew attention to this correlation in October, noting that the influx of stablecoin deposits was “helpful to predict the BTC surge at the end of July.”
Data from CryptoQuant also shows stablecoin inflow transactions hitting new 2020 highs on Oct. 18, exceeding 60,000 transactions. The number of such transactions has fallen since, however, accounting for about 30,000 by the end of October.
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