The issuer of the greatest stablecoin USDT, Tether has began printing again after an almost two-month pause that rose investors’ worry and examination.
Also, a minimum of 2.3 billion USDT has been minted by Tether since August 1, driving the token’s market value to $65 billion. The stablecoin, USDT, which is pegged to U.S dollars, usually exchanges around $1.
USDT’s market capitalization in June and July flowed around $62 billion, despite small swings. Analysts in the space attributed the decreased demand to China’s crackdown on cryptocurrency, the rise of the rivalry stablecoin USDC and investor worries over Tether’s value instability.
Demand for USDT has as of late bounced back, as per Tether and industry experts, as cryptographic money market sentiment has turned increasingly positive. The largest digital money by market cap, bitcoin (BTC), has bounced back from its July low of around $29,600, exchanging at $49,540 as of press time, up 1.8% in the course of recent hours.
The average exchanging volume of USDT against Solana for the first 22 days in August stood at 386.6 million, up from a July average of 123.4 million and a June average of 290.7 million, as per CryptoCompare. The average exchanging volume of USDT against land for the first 22 days in August was 320.2 million, up from a July average of 120.5 million and a June average of 98 million.
Others refered to Tether’s increased transparency as another reason for the bouncing back demand. In its new attestation published on Aug. 9, Tether gave more details than any other time in recent memory on the composition of its $62.8 billion of reserves.
However, almost 49% of Tether’s $62.8 billion reserves are invested in commercial paper or CP, largely short-term corporate loan and certificates of deposits or CDs.
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