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Aug 22, 2022 09:24
Tether shows growth again
The Tether Stablecoin (USDT) is still at the top of the ranking of digital currencies with fiat collateral. In May, the capitalization of this stablecoin decreased sharply. The reason for this was Terra's liquidity problems. But at the beginning of August, there was another rise in the market supply of Tether.
At this point, the capitalization of USDT has increased by almost $2 billion. By contrast, the supply of the other leading stablecoin, USDC, has declined by about $ 2 billion. So, in other words, investors reallocated capital between the two tokens in favor of Tether.
It happened after the U.S. Treasury Department imposed sanctions against the Tornado Cash crypto transaction service. As a result, the USDC issuer, Circle, blocked Ethereum addresses with its tokens associated with Tornado Cash.
Paolo Ardoino, the Tether CTO, didn't exclude that investors have indeed redistributed capital between the major stablecoins in favor of USDT, as its issuer is more loyal to investors and doesn't block funds, unlike Circle.
As of mid-August, the USDC and USDT are capitalized at $53.45 billion and $67.57 billion, respectively. Henbbo fund analysts, back in July, predicted a similar situation and a strengthening of USDT positions, which allowed an increase in the total profit by 15% in the two weeks of August.
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