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Tether’s market cap tops $ 17 billion, which is fueling Bitcoin’s price surge

November 6, 2020

According to Tether’s official transparency data USDT’s market cap surpassed the $ 17 billion mark for the first timeand reached total assets of more than 17 billion US dollars.

Tether’s market capitalization grew exponentially in 2020. By mid-September it had quadrupled since the beginning of the year. more than $ 15 billion out of approximately $ 4 billion.

According to the cryptanalysis company Messari, USDT saw a significant increase from August 2020 to date. As a result, USDT has added more than $ 5 billion in market cap over the past three months.

Tether’s market cap tops $ 17 billion, which is fueling Bitcoin’s price surge
Tether’s market cap tops $ 17 billion, which is fueling Bitcoin’s price surge

Tether (USDT), the largest stable coin in the cryptocurrency market, is seeing a massive influx of its market capitalization. This should drive the current price hike in Bitcoin (BTC).

Market capitalization of the stable coin. Source: Messari

according to Ki Young-Ju, CEO of the cryptocurrency data platform, CryptoQuant, The recent rally is being driven by more deposits in stablecoins like USDT. On November 5th he stated:

“Once again, the price of BTC dollars soared just after the number of stable coin deposits increased.”

Ki Young-Ju drew attention to this correlation in October and found it The influx of stablecoin deposits was “helpful in predicting the BTC surge in late July”.

CryptoQuant data also shows that stable Bitcoin inflow transactions hit new highs in 2020 on October 18. more than 60,000 transactions. However, the number of such transactions has since declined, reaching around 30,000 by the end of October.