According to common data from the blockchain glass node analysis service, The average value of transactions with Tether (USDT) has exceeded the high of the past six months.
USDT is a stable coin, a type of cryptocurrency that has the same characteristics as other digital assets, but the value of which is secured by a national fiat currency, and the value of which is therefore stable. In the case of USDT, the support is the US dollar, ie Every 1 USDT is always worth 1 $.
USDT is widely used by cryptocurrency traders who intend to stay in the dollar without having to leave the cryptocurrency market Withdrawing fiat money from exchanges.
The Glassnode Alerts service developed by the in-chain data provider Glassnode reports on the most interesting events in the blockchain Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC).
According to the platform, the average transaction volume in USDT exceeded the equivalent of USD 1,000 for the first time since December 2019 and reached almost USD 1,100.
The previous high was observed on December 12, 2019 and was 11.2% below the recently registered high.
According to the graph, this metric shows that there is no clear correlation between the average USDT transaction and the price of digital assets. However, this increase in the average USDT transactions coincided with a dramatic drop in BTC prices last weekend.
On Sunday (10), Bitcoin dropped from $ 9,600 to about $ 8,100 in a matter of minutes.
The $ 1,500 price drop in digital assets went hand in hand with large-scale execution of leveraged contracts on major cryptocurrency derivatives exchanges.
Leveraged contracts worth nearly $ 270 million were settled this Sunday when the Bitcoin market lost nearly $ 20 billion.
According to experts, the increase in the average transaction volume in US dollars can be interpreted as an indication of the greater presence of whaling (large wealth traders) in this market.
Another factor suggesting that large traders are stacking up the asset was billionaire Paul Tudor Jones’ recent statement that he owns around 2% of his Bitcoin investment portfolio.
Many expect new investors to join in after Paul Jones explains the importance of Bitcoin in an inflationary environment.
Traders and analysts believe that whale investors have been accumulating digital assets lately. And it’s not just about the Bitcoin whales.
Metacartel Ventures DAO analyst Adam Cochran recently published an article that Ethereum’s top portfolios are also hungry, active, and show no signs of selling.