- Tether experienced a surge in transaction volume, its highest in two months, due to a false spot Bitcoin ETF approval report.
- The stablecoin's 24-hour volume jumped from $12 billion on Sunday to $47 billion on Monday.
- Tether's remarkable volume increase is a positive for broader crypto assets.
Tether (USDT), the largest stablecoin by market cap, experienced a surge at the start of this week, reaching a two-month high in terms of transaction volume. Tether's volume soared from $12 billion to an impressive $47 billion in just one day. The increase was due to the market fervor that occurred due to false news surrounding a spot Bitcoin ETF approval.
Tether's rise due to ETF frenzy
Tether witnessed a rise in volume with Santiment highlighting that its on-chain volume hit a two-month high. According to CoinMarketCap data, its 24-hour market volume rose from $12 billion on Sunday to a substantial $47 billion on Monday, marking a 290% increase. On Tuesday and Wednesday, the 24-hour volume remains close to $38 billion.
USDT 1-day volume
This surge reflects the keen investor interest in spot Bitcoin ETFs. Investors turn to stablecoins to keep their capital safe during volatile price movements when they do not want to exit the market entirely. They want to wait on the right opportunity to buy riskier crypto assets.
Meanwhile, Santiment notes an accumulation in Tether's largest whale wallets during the spike. The top 10 largest Tether wallets now collectively hold a quarter of the entire USDT supply.
Tether boasts a circulating supply of 83.6 billion USDT.
Tether celebrates October
October is usually considered a bullish month based on the historic market data. Meanwhile, October or 'Uptober,' as the crypto community calls it, is also the birthday month of the first stablecoin.
October 2023 also marks the 9th anniversary of Tether's creation. At the time of writing, Tether's market capitalization stands at $83.7 billion, based on CoinMarketCap data.
The cryptocurrency's daily trading volume fell by 17% as compared to yesterday. The ratio of trading volume to market capitalization stands at 44%.
Increased Tether volume is a positive for the crypto market as it shows investors the potential crypto buying in the future.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.