- Tether’s injection of 1.845 billion USDT into exchanges on the Ethereum network may have contributed to Bitcoin’s recent surge to a new all-time high of $76,000.
- Spot On Chain’s analysis suggests a correlation between large Tether minting events and upward trends or stabilization in BTC price.
- The stablecoin space is becoming increasingly competitive, with new entrants like Ripple’s RLUSD and the Global Dollar (USDG) challenging Tether’s dominance.
Tether, the stablecoin firm behind USDT, injected a massive 1.845 billion USDT into exchanges on the Ethereum blockchain network, which may be one reason why the price of Bitcoin (BTC) skyrocketed in the past 24 hours and reached a new all-time high at $76,000.
According to a post on X (formerly Twitter) by Spot On Chain, a blockchain analysis platform, Tether first minted a massive 2 billion USDT tokens on Ethereum and then, burned a substantial 1 billion USDT on Tron (TRX), a blockchain for creating decentralized applications.
Tether injected $1.706 billion to Binance, $101.7 million to Coinbase, $20 million to OKX, and $17.86 million to Kraken. Over the past year, the stablecoin firm has minted a whopping $37 billion USDT across Ethereum and Tron, helping Bitcoin to surge from $35.6K to its ATH of $76,460.15, which it reached a few hours ago.
Tether’s Impact on Bitcoin Price
In an X post in September, Spot On Chain noted that after significant USDT minting, the BTC price often “sees an upward trend or stabilization” This suggests that Tether played a significant role in the 9% BTC price surge on November 6th.
Read also: Bitcoin’s Path to $100,000: Predictions, Election Impact, and Halving Effects
CoinMarketCap data shows Bitcoin was trading at $74,741.01 at the time of publication, down 2.34% from its all-time high. The market cap of the cryptocurrency rose to $1.48 trillion while its trading volume was $93.72 billion.
Competitive Stablecoin Space
The stablecoin space is increasingly competitive with USDT losing some of its market share to USDC and DAI. Also, American fintech firm Ripple is planning to debut its stablecoin RLUSD in the near future and capitalize on the demand for a transparent stablecoin infrastructure.
Several companies, including Robinhood, Paxos, Kraken, Nuvei, Bullish, Anchorage, and Galaxy Digital, recently teamed up to debut a new stablecoin called the Global Dollar (USDG), with DBS Bank as the primary banking partner for the Global New Dollar network.
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