Tether Adds $60 Million to its Inventory, USD Stablecoin Supply Rises over $2.5 bln

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The stablecoin supply of cryptocurrencies has been in a strong uptrend in March 2020. Last night, $60 million was added to the inventory of Tether, as the firm prepares for issuance of more USDT.

Paolo Ardoino, CTO of Bitfinex and Tether tweeted on the update,

PSA: inventory replenish. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.

The total liability (asset issued on-chain) has increased to $6.43 billion. As reported only a week earlier, Tether (USDT) supply was at $6.19 billion; it has risen by $240 million since then. Nic Carter, the founder of Coin-metrics tweeted,

Stablecoins collectively tacked on over $2b in March 2020 – by far their best month ever. Nontether stablecoins grew by $500m. Big winners: Tether, USDC, Binance Dollar

usdt tether supply
USDT Tether Supply on Ethereum, OMNI and Tron (Source)

As the traders remain in the fear of a downtrend due to the economic slowdown, the increase in stablecoin volume points towards bulls in the future.

In the past as well, the rise in the supply of Tether has acted as a precursor to a bull season in crypto markets. The last time a rise in the supply was witnessed was before the bull run of 2019 in May 2019; USDT increased from $2.56 billion to $3.28 billion in less than a month.

The massive QE program which the Governments of the world ($6 trillion by the US alone) have undertaken to address the coronavirus crisis might also be influencing an increase of USD based stable coins.

Apart from acting as a fundamental bullish indicator, Tether also adds sufficient liquidity for swings in price. Sid Shekhar, co-founder of market tracker TokenAnalyst told the media,

The more Tether there is in existence (and specifically the more sitting on exchanges), the more there is opportunity for sharp swings

How do you think the issuance will affect the crypto markets? Please share your views with us. 

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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