Tether (USDT) inflows to exchanges have recently peaked in the past 8 months. according to the information from the chain data provider Glassnode. Stablecoin inflows to the exchanges peaked yesterday in 2020 when Bitcoin (BTC) rose to $ 10,270. Although BTC has continued to recover, it is currently at $ 11,000.
USDT listings on exchanges. Source: Glassnode
While research companies have found that there is an inverse correlation between USDT on the exchange and the price of Bitcoin, Tickets can also be seen as a bullish sign of Bitcoin as USDT is the fastest and most popular way to buy Bitcoin.
USDT continues to grow on all fronts
USDT recently broke a number of records and recently surpassed Ripple (XRP), the third largest cryptocurrency by market cap, and even surpassed the $ 10 billion mark this month. USDT is currently the largest part of the collective capitalization of the stablecoins market, which has also recently exceeded $ 12 billion.
Not only has USDT’s market cap grown steadily (along with most of its USD-based competitors), it has also recently recovered. Although the volume of the USDT is still far from its all-time high recorded in March 2020, the volume of the BTC / USDT pair recovered last week and was mainly driven by the rise in the price of Bitcoin.
USDT 24-hour volume (BTC). Source: CryptoCompare
A recent report from Messari, a chain data and market analysis company, It showed that USDT alone can overtake Bitcoin as the dominant cryptocurrency very soon in terms of daily transaction volume.
This takes into account the entire USDT, which is transmitted via the Ethereum, Tron and Omni layer, a colored coin protocol in Bitcoin’s own blockchain. The growth in value processed by USDT is also largely due to internal transactions on stock exchanges and in the decentralized financial sector (DeFi).
Daily Bitcoin vs Tether transaction value. Source: Messari
The bearish scenario
The recent surge in stock market inflows along with all other USDT metrics could suggest a bullish scenario for Bitcoin. While a growing market cap for USDT indicates demand for stable Bitcoin, the increase in listing shows the demand for Bitcoin and other cryptocurrencies.
Additional USDT demand could be attributed the fact that only a few exchanges offer USDT-based derivatives to trade Bitcoin long-term and short-term.
According to CryptoCompare analyst James Li Glassnode’s recent USDT stock market listings may not be as positive a factor in Bitcoin’s price when viewed in isolation. Li said to Cointelegraph:
If you just look at the historical patterns on the chart, I don’t think there is a bullish signal. Some previous great priors saw prices fall, others didn’t move prices. The moment when the price hike finally came was after the big decline in March, but this time there was no decline that preceded this price hike. “