Tether volume more than doubles as top whales accumulate USDT amid ETF mania
- 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.
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.
Author
Shraddha Sharma
FXStreet
With an educational background in Investment Banking and Finance, Shraddha has about four years of experience as a financial journalist, covering business, markets, and cryptocurrencies.
