With respect to fortune, Tether, the largest stablecoin in the industry, has witnessed a roller-coaster of a year in 2019. The stablecoin was first dragged into the controversial Bitfinex fiasco, where Bitfinex allegedly covered a $850 million loss with Tether funds, leading to Tether experiencing the biggest fall in valuation ever and dropping to $0.94.
Tether was quick to recover from the downfall however and despite backing irregularities, it was recently reported that Tether was high on the list of institutional usage as USDT dominated the likes of USDC, PAX and DAI across financial and VIP clients.
At press time, the attention of the community had shifted to the massive Bitcoin rally. However, the market also underwent a flash fall over the past week after BTC’s valuation dropped by more than $2000.
Thus, it may have went unseen that more and more USDT was issued and released into the market as Tether’s market cap continued to rise in valuation.
According to reports, a sum of $100 million has been tallied to Tether’s existing market cap of $3.6 billion, since Friday. Further, there was also another movement identified by the community.
Tether has pumped well over the latest Bitcoin bull run and it has been observed that Tether’s volume was greater than $40 billion when Bitcoin peaked at $13,800 last week. Bitcoin recorded an immediate fall following the same and coincidentally, 55 million USDT were minted at that moment, suggestively helping Bitcoin’s price to consolidate.
eToro’s Mati Greenspan confirmed that a majority of the Tether funds were directed towards Bitcoin itself and Ethereum was the second crypto-asset to receive the highest Tether funds. Some were also circulated into the ETH ecosystem via BTC/ETH pairs.
The massive movement of Tether raised speculations that USDT was stopping the market from witnessing a major pullback and that the current rally of Bitcoin was driven my traders who were familiar with these Tether movements.