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Tether market cap surpasses $17 billion, fueling Bitcoin price rally

Tether market cap surpasses $17 billion, fueling Bitcoin price rally

Based on Tether’s official transparency information, the USDT market cap crossed a $17 billion mark for the primary time, hitting over $17 billion in complete property.

Tether’s market cap has been rising exponentially in 2020. As of mid-September, Tether’s market cap had seen practically a four-fold improve for the reason that starting of the yr, surging above $15 billion from round $four billion.

Based on information from crypto analytics agency Messari, USDT noticed a notable improve from August 2020 to this point. As such, USDT added greater than $5 billion in market cap over the previous three months.

Tether (USDT), the biggest stablecoin within the cryptocurrency market, is seeing an enormous inflow in its market capitalization, which is probably going fueling the present Bitcoin (BTC) worth rally.

Stablecoin market capitalization. Supply: Messari

Based on Ki Younger-Ju, CEO of crypto information platform CryptoQuant, the most recent crypto rally is being pushed by an elevated quantity of deposits in stablecoins reminiscent of USDT. On Nov. 5, he identified:

“Once more, the $BTC worth soared proper after the variety of secure coin deposits elevated.”

Ki Younger-Ju beforehand drew consideration to this correlation in October, noting that the inflow of stablecoin deposits was “useful to foretell the BTC surge on the finish of July.”

Knowledge from CryptoQuant additionally exhibits stablecoin influx transactions hitting new 2020 highs on Oct. 18, exceeding 60,000 transactions. The variety of such transactions has fallen since, nevertheless, accounting for about 30,000 by the top of October.