The funds minted at the Tether Treasury since August 5 have been moved to different exchanges, indicating potential large-scale accumulation among crypto investors.
The crypto market is gleaming with bullish sentiment as on-chain activity points to a notable institutional influx. These notions are backed by the increased minting and distribution activities of the leading stablecoin issuer, Tether.
Data from Lookonchain showed that Tether has minted $3 billion USDT in one week (between August 13 and 21) as the market gears toward bullish trends from Bitcoin and altcoins. Notably, the minted funds have flowed into major exchanges, signaling potential increased crypto accumulation.
The data showed that of the $3.22 billion minted on the Tether Treasury since August 5, $1.75 billion has flowed through Cumberland to Binance, Coinbase, OKX, Kraken, and Bullish.com. The other $1.29 billion moved into Kraken via a deposit address, “TQef1.” Cumberland has been a significant medium through which funds move from the Tether Treasury to exchanges.
Fund influx of this nature is always perceived as bullish for the market, as it shows surging demand for stablecoins to purchase cryptocurrencies. The incessant demand saw Bitcoin surge to $61,000 on Tuesday, while altcoins like SHIB and XRP reached $0.000039 and $0.613, respectively.
Stablecoins Hits $169B Market Cap
Data from Coingecko showed that the market cap for stablecoins has reached $169 billion, the highest ever in the sector. This increased market dominance from stablecoins has seen them hold 7.72% of the cryptocurrency market share.
Tether’s incessant USDT minting has kept it as the leading stablecoin issuer with a market cap of $117.3 billion. Notably, Tether dominates 69% of the entire stablecoin valuation, accounting for 5.36% of the crypto market.
Circle’s USDC is the second-largest stablecoin, with a market cap of $34.8 billion. The US dollar-pegged cryptocurrency ranks 6th in the crypto pecking order and accounts for 20.5% of the stablecoin market.
Historical data shows that an explosive increase in stablecoin issuance in the crypto market precedes a rally. Analytical platform CryptoQuants confirmed the bullish disposition of the event, stating it signals a potential rise in Bitcoin and altcoin prices.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
