Tether supply begins to rise following a three-month drop
Tether (USDT), the world's largest stablecoin,
has increased its circulating supply after almost three months of declines, which might indicate that the crypto markets are slowly rebounding.
According to sources, the first mint in nearly three months occurred on July 29, and there have been three more since then, the most recent on August 2. However, the USDT injections have been small, raising Tether's market valuation by only 0.7 percent, or slightly under $500 million.
The Tether transparency report shows that there are presently 66.3 billion USDT in circulation. This gives the stablecoin a total market share of roughly 43 percent.
Tether supply reached an all-time high of 83 billion USDT in early May. The collapse of the Terra ecosystem, as well as the resulting crypto contagion and large-scale redemptions, caused the company to lower the circulating supply, which plunged 21 percent to a low of 65.8 billion in late July.
This has enabled competitor company Circle to boost the market share of its stablecoin USDC, which currently commands a 36% share with a market valuation of $54.5 billion. As CoinGabbar reported last month, USDC circulation on Ethereum briefly surpassed Tether's as the number two stablecoin continues to catch up.
Binance CEO Changpeng Zhao commented on the number of stablecoins ready to re-enter the market over the weekend, stating:
“3 of the top 10 are stablecoins, indicating that there is a lot of "fiat" sitting on the sidelines, ready to step back in. Most people that wish to get out of crypto will not hold stablecoins.”
Stablecoins currently account for 13.6 percent of the total crypto market valuation, which is close to its ATH levels.
