Mon, 29/01/2024 – 16:20
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Tether (USDT), the largest stablecoin by market capitalization, seems to be on track to reach a $100 billion market cap as the market eyes fresh inflows of capital into the crypto space.
According to CoinMarketCap data, Tether USDT’s market cap stood at $96 billion at press time.
Per crypto data tracker WhaleAlert’s reporting, stablecoin issuer Tether minted one billion USDT worth $999,867,499 on Monday.
According to Tether CEO Paolo Ardoino, the latest mint represented “1 billion USDT inventory replenish on the Tron Network.” He also stated that this was an authorized but not issued transaction, meaning that the amount would be used as inventory for next-period issuance requests and chain swaps.
Matrixport research highlights the significance of recent Tether mints, stating that money returns to crypto after Bitcoin’s consolidation. It further stated that, despite low volumes, Tether may aim for a market capitalization of $100 billion.
Along similar lines, on-chain analytics platform Santiment noted that stablecoin market caps have been rising since rebounding just before the October bull cycle began.
Since late September, the combined cap of USDT, USDC, DAI, BUSD, TUSD and USDP has increased by $9.42 billion, or 7%, in the last four months. According to Santiment, this is typically a necessary ingredient for bullish conditions.
In addition, whale wallets with more than $5 million in holdings are back to holding over half the stablecoin supply.
Market awaits fresh inflows
The crypto market awaits fresh inflows, given the significant outflows in the past week. According to the most recent CoinShares report, digital asset investment products experienced large global outflows of $500 million.
Grayscale outflows totaled $2.2 billion last week, although data suggests that outflows are beginning to lessen as the daily total continued to fall throughout the week.
In sharp contrast, newly established U.S. ETFs received $1.8 billion in inflows during the last week and $5.94 billion since their inception on Jan. 11, 2024.