Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => USDT Forum => Topic started by: Pegasus on November 01, 2018, 04:29:04 PM
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The total withdrawals of Tether (USDT) from the market in October exceeded 1.3 billion units, significantly cutting into the supply of the stablecoin.
In the past month, the Tether treasury performed operations to empty out the Bitfinex wallet, the latest dated October 31 and involving 50 million USDT. But the treasury then returned 10 million USDT into the Bitfinex wallet. The purpose of that operation is unknown, but it has increased somewhat the liquidity on the exchange, especially after some of the funds were redirected to other addresses.
With the decreased supply of USDT, around 45% of Bitcoin (BTC) trades are performed against the dollar-pegged coin, based on data from CryptoCompare. For now, the price of USDT has also stabilized around $0.99 on Kraken and has mostly regained its dollar peg. The premium on BTC prices on Bitfinex has shrunk to around $76 after going as high as $700 during the times when USDT suddenly lost its dollar peg.
At the same time, other stablecoins are increasing their supply, with USDC having over 127 million tokens in circulation. TrueUSD (TUSD) has more than 173 million tokens, and Paxos (PAX) has broken through the 100 million token barrier. Still, the total supply of the leading stablecoins amounts to less than 20% that of USDT, even after the latter has dropped to 1.7 billion tokens.
Despite the shakedown, the crypto markets have taken the USDT crisis in stride. BTC currently trades at $6,398, quite close to its usual level of $6,400 these days. Even USDT trading sees very limited volatility, with no attempts to push the price in either direction. The relative stability of BTC is seen as a sign of either loss of interest or the end of the bear market.
The USDT that has left the market is not all lost. At this point, the Tether treasury has the option of pouring back more than 700 million coins. Of the 1.3 billion USDT withdrawn, just 500 million were burned, and the rest are locked away, with the theoretical option of re-entering the market.
Source (https://cryptovest.com/news/over-13b-tether-usdt-leave-market-in-october-alone/)
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For now, the price of USDT has also stabilized around $0.99 on Kraken and has mostly regained its dollar peg. The premium on BTC prices on Bitfinex has shrunk to around $76 after going as high as $700 during the times when USDT suddenly lost its dollar peg.
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For now, the price of USDT has also stabilized around $0.99 on Kraken and has mostly regained its dollar peg. The premium on BTC prices on Bitfinex has shrunk to around $76 after going as high as $700 during the times when USDT suddenly lost its dollar peg.
When Bitfinex decided to withdraw their USDT, they also caused a massive drop ar Bitcoin price, this also affects to the position of Tether in stable coin top. Currently many investors have chose PAX or Gemini as the replacement to USDT