Signs of Tether (USDT) show that the market is recovering

The world's largest stablecoin Tether (USDT) has expanded its circulating supply after nearly three months of continuous decline, which could be a sign that the crypto market is slowly recovering.

Signs of Tether (USDT) show that the market is recovering

The supply of Tether reached an all-time high in early May 2022 with a market capitalization of up to $83 billion. However, after the collapse of the Terra ecosystem, combined with the widespread liquidity crisis that caused a series of crypto companies in the lending field to fall into bankruptcy, the supply of Tether has decreased by 21% to the current level. as low as 65.8 billion at the end of July 2022.

This is the same reason that has once again "triggered" Tether's legal troubles and "shady" business activities in the past, so many investment funds are said to have increased their bets on this position. their short position in USDT recently.

This has allowed rival firm Circle to increase its USDC stablecoin market share, which currently accounts for 36% with a $54.5 billion market cap.

Last month, USDC volume on Ethereum actually surpassed USDT during a period when Circle was constantly making amazing developments, such as its readiness to publish a detailed USDC margin report after the "storm". FUD", deploys USDC to Polygon for Web3 payments and launches euro-backed stablecoin.

In addition, good news appeared over the weekend when referring to the stablecoin sector, Binance CEO Changpeng Zhao commented on the situation that current investors are ready to re-enter the market, with the following statement:

"3 out of the top 10 cryptocurrencies are stablecoins, which means a lot of fiats is waiting for traders to come back. If people want to get out of the industry, they won't hold stablecoins for anything."

In fact, a cost-of-living crisis caused by rising global inflation may have curbed crypto investment and speculation among retail traders.

However, people living in countries with peak inflation, such as Argentina, have used stablecoins as a "salvage" solution for their domestic currency. The proof is that there has just been a transfer of football players traded in USDC between an Argentinian and Brazilian team.