On Wednesday, the Fed issued a comment with no interest change, and while cryptocurrency prices have swung both ways since then, Tether (USDT) is standing out with its supply records. A change in the supply of the stablecoin was expected due to the broad market correction and subsequent liquidations. A large number of traders closed their positions and are currently holding large positions in USDT.
Now the chain data provider Sent information that the provision of USDT on cryptocurrency exchanges has reached a 6-month high.
The share of Tether stablecoins on exchanges has risen to 22.5%, which is the highest level in more than 6 months. This supply amount becomes $ 8.99B, indicating an increasing level of accumulated purchasing power in exchanges.
This, according to the data provider, indicates “greater purchasing power of merchants.”
Tether continues to print USDT despite controversies
With increasing demand, Tether has continued its massive printing on USDT this year. In the last month alone, Tether issued stablecoins worth $ 4 billion. And while remaining in the position of the fourth best cryptocurrency, Tether recently achieved a market capitalization of $ 77.4 billion, having risen below the $ 70 billion mark in mid-October.
Furthermore, the supply of tokens in the cryptocurrency market has increased tremendously this year. On the year-to-date chart, USDT’s supply has quadrupled, from $ 20 billion to nearly $ 80 billion.
But even then, Tether has received hit after hit of allegations of misrepresentation of the relationship between its reserve and issued tokens. Claims have risen that the stablecoin issuer prints USDT out of thin air while claiming to back them 1: 1 against the US dollar. One of its main clients even reported receiving new stablecoins in exchange for other cryptocurrencies. However, Tether has always denied such claims stating instead that all of its reservations are as they should be. Their website says:
100 percent backed by reserves, which include traditional currency and cash equivalents and may from time to time include other assets and accounts receivable.
This puzzling controversy has drawn criticism from several senior officials, including US Senators Elizabeth Warren and Sherrod Brown. At a recent Senate hearing, Warren called stablecoins “shady” and Brown called them “magic money,” adding that they are neither decentralized nor transparent as they claim.
Crypto players who attended the hearing as expert witnesses had to contradict opinions on how digital assets should be regulated. Some asked for support, while others had strict supervision and possible repression.
USDT gets political backing
However, these events have not stood in the way of Tether’s adoption even by political parties. Recently, the shadow government of Myanmar, under the leadership of the ousted leader Aung San Suu Kyi, made Tether its official currency. Tether praised the parallel government move, saying:
This is a compliment to the strength of the US dollar and its ability to provide a haven for the citizens of the world.
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Tether (USDT) supply on exchanges hits a new 6-month high as investors prepare to buy