Dollar Tether (USDT), the largest stablecoin cryptocurrency pegged to the U.S. dollar, has set a new record for deposits on centralized exchanges. According to leading analytical company CryptoQuant, traders have invested $12.5 billion in USDT on centralized exchanges since the U.S. presidential election.
Stablecoin reached a new high on exchanges.
Since November 4, #USDT volume has risen from $30.5 billion to $43 billion (41%), increasing liquidity in the market.
Thanks to the large influx of USDT liquidity, the net volume of stablcoin transactions on the exchange has increased by 43% in less than three months to a record $43 billion. According to
CryptoQuant, net equity in the stablecoin segment increased from US$167 billion to US$204 billion over the same period. From November to January, this figure rose 22.1%, reaching a record high.
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Since the liquidity of stablecoins can only be used to buy bitcoin (BTC) and altcoins, the concentration of stablecoins on the CEX may suggest that the next phase of the #BTC rally is just around the corner.
By comparison, 2021-2022 is the period of the BTC rally. During the most painful phase of the #cryptocurrency downturn between 2021-2022, the net turnover of stablecoins on centralized exchanges reached $18 billion after the FTX/Alameda collapse. The market capitalization of the stablecoin segment at that time was $140 billion, which is almost 30% less than it is now.
The stablecoin segment remains fairly centralized, with USDT accounting for 66%. However, the largest stablecoins are being challenged by USDC's main competitor, Circle As
U. Today previously reported, CryptoQuant named USDC the fastest-growing stablecoin in recent months. In three months, assets have grown from $35 billion to more than $52 billion.
USDT's position could be jeopardized by the emergence of new regulated stable coins such as Ripple's RLUSD and the delisting related to MiCA for EU customers.
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