Tether (USDT), the most popular stablecoin in the cryptocurrency market, has influenced the market greatly in the past week with additional capitalization. On November 14, 2024, Spot On Chain pointed out that Tether minted an extra $2 billion USDT on Ethereum & Tron.
Within the last eight days, $8 billion USDT had been minted. This has led to a significant increase in investments as more people try to own the digital currency, leading to Bitcoin crossing $93,000, the highest it has ever reached.
Tether’s Strategic Injection of Liquidity
According to the data provided by Spot On Chain, of the $8 billion USDT issued by Tether, about $6.067 billion flowed directly into the crypto market. This enormous amount of liquidity has been distributed over several large cryptocurrency exchanges and wallets, turning into a capital flow that contributed to Bitcoin’s increase in price.
Key Beneficiaries of Tether’s USDT Injection
Tether’s USDT distribution can be broken into direct deposits and transfers of USDT through an intermediate wallet. The following exchanges and entities received significant USDT injections:
- Kraken: Kraken received the largest amount of the USDT, receiving direct deposits of 2.73 billion USDT and an additional 252 million USDT through the intermediary wallet, totaling 2.98 billion USDT.
- Coinbase: The exchange received a total of 1.46 billion USDT, which all passed through the intermediate wallet.
- Binance: Another large presence, Binance, had direct deposits of 774 million USDT and 176 million USDT through an intermediary wallet, amounting to 950 million USDT.
- Bitfinex: The exchange received a direct deposit of 325 million USDT.
- Cumberland DRW: The actual control over the intermediary wallet is in the hands of the liquidity provider, which received 193 million USDT.
- Other entities: Lesser amounts were given to OKX, Cobo Custody, Bybit, Amber Group, Matrixport, and Bullish.com, with each totals varying from 5 million to 80 million USDT.
Market Impact and Bitcoin’s Rise to $93,000
This has been one of the central factors behind the recent surge in the price of Bitcoin. Launched on key exchanges, stablecoins have added more stablecoin volume, which has proven useful in acquiring more Bitcoins and creating a demand for Bitcoin to surge to an unprecedented $93,000.
This development is a sign that Tether, with its USDT, maintains significant control over promoting the cryptocurrency market, as it helps provide upward price movement to cryptocurrencies such as Bitcoin through the minting of the stablecoin.
