Crypto News: Tether hit a billion USDT on Ethereum – why?

Tether has once again hit a billion USDT tokens on the Ethereum blockchain. The public is now asking what could be the reason for these prints. Demand for cryptocurrencies such as Bitcoin and Ethereum could be expected. In this article, we look at what the expansion could mean for the sector.

On April 20th, a significant amount of USDT tokens were minted on the Ethereum network. This is derived from the data from Etherscan. The chosen cryptocurrency is a particularly popular stablecoin, which has a 1:1 ratio with the USD.

Among other things, stablecoins are used to trade on exchanges that do not accept FIAT currency as a payment method.

Now the holders and readers of these transactions are asking themselves what such a deal is all about. Paolo Ardoino, CTO of Tether, wrote on Twitter the same day that it was an “addition”.

PSA: Replenish 1B USDt inventory on Ethereum Network. Note that this is an authorized but not issued transaction, which means this amount will be used as inventory for the next period’s issuance requests and chain swaps.

— Paolo Ardoino 🍐 (@paoloardoino) April 20, 2023

“Replenishment of 1B USDT inventory: on the Ethereum network. Please note that this is an authorized but unspent transaction, which means this amount will be used as inventory for the next period’s issuance request and chain swaps.”

He was responding to a tweet from Walalarm. This is where crypto traders are kept up to date on such large transactions.

Whale movements may further increase the adoption of the stablecoin

One reason for this filling is the expectations of those responsible. The crypto market has shown a strong recovery since the beginning of the year. Things are constantly improving.

Therefore, one could assume that Tether is certain that trading will continue to progress in the future. Because the stablecoin is used to pay for Bitcoin and Co on the platforms provided for this purpose. Accordingly, one would like to offer customers an increased range of required currency.

Simon Couseart, director of research at The Block, agrees. He said in an interview on the subject, “Tether usually issues new USDT when they see and expect higher demand.” The transaction suggests that “new cash is coming into the system – generally used to trade Bitcoin, buy ether and other cryptocurrencies.”

The crypto market and the coin itself could benefit from an increased number of USDT tokens.

There are now over 81 billion USDT tokens in circulation. No other stablecoin comes close to this amount. This additional minification could lead to a further increase in Tether adoption.

Tether: The largest stablecoin in the crypto sector

Currently, Tether is the most successful coin that successfully combines cryptocurrencies and the US dollar. Market capitalization is more than USD 81 billion today. This is according to data from Coinmarketcap.

In the market cap stage, the token is in third place. The 24-hour trading volume today is at a level of approximately USD 34 billion.

The cryptocurrency is currently facing competition from USDC, the stablecoin issued by Circle. It has a market capitalization of around USD 30 billion.

Binance Exchange The BUSD coin is well below this level with a market cap of $6.33 billion. It only recently stopped hitting new signals.

Correlation between USDT and the Bitcoin?

So some experts are already assuming that after the tether rise, there will be a crypto upswing. So you want to be prepared. A study by BDC Consulting reached similar conclusions last year.

They published a study that showed that Coin USDT has some correlation with Bitcoin. It says specifically in the publication.

“BDC Consulting analysts ran correlation tests on more than 20 indicators and found that USDT supply has a strong and statistically significant correlation with BTC price. The resulting model achieved a ROI of 229%, with market entries and exits timed to USDT supply peaks, demonstrating that stable coin supply data can be used during trading.”

These results were obtained from correlation tests such as Pearson, Kendall and Spearman, among others. Almost 20 indicators were used on a chain.

The study’s researchers point out that the recorded link has already been proven several times in the past.

“An increase in the overall supply of stablecoins indicates that large investors are ready to buy BTC in anticipation of a reversal – and as the model shows, they were usually right. Individual investors and traders can use on-chain data about Tether supply to time their market entries and exits.”

So if you trust the statements of the researchers in this study and the founders of Tether, a significant increase in prices could be coming. This would kick in the price of bitcoin. Because it is one of the most promising cryptocurrencies.

Today it is functioning positively again. In the last 24 hours, it has seen a plus move of more than seven percentage points. Thus it reached the value of USD 29,704. Many investors may already be looking for a platform where they can buy Bitcoin without fees.

Therefore, most of the public and analysts are convinced that the surge in Tether supply may be related to an upcoming bull run. This issue could be discussed on the Love Hate Inu platform in the future.

Love Hate Inu: Presale Price keeps going up

There are many surveys to be conducted on the Love Hate Inu Token website in the near future. On the one hand, events from the crypto sector should be the subject of these surveys. But other important subjects, for example from politics, should also be taken into account here. This is based on the Vote to Earn principle.

Because users should be rewarded for sharing their opinions. At the same time, they should be able to have a say about the topics they should play a role in the future. The presale also accepts Tether as a payment method. It has already raised $7.4 million. The sale price for the LHINU tokens is expected to rise again in the coming week. For entry into the crypto sector, we also recommend our eToro reviews. You will then get an initial insight into how investing works and which broker might be right for you.