Data from CryptoSlate shows that Tether's #USDT dupply has topped 74 billion for the first time since May 2022.
When its stablecoin competitors, such as #Binance USD (BUSD) and USD Coin (USDC), experienced regulatory attention and banking concerns during the previous 30 days, Tether's supply increased by almost 5 billion. Investors abandoned these troubled stablecoins as a result and switched to USDT because of its greater safety.
For reference, the supply of USDT increased by 10% this year while the supplies of USDC, BUSD, and DAI decreased.
The market share held by USDT has risen to 56.4%, the highest level since July 2021.
According to Santiment, a blockchain analytics company, there have recently been more whale transactions in Tether.
Santiment claims that during the last year, the stablecoin saw eight $1 billion transactions, half of which happened in the previous 10 days as numerous whales removed their USDT holdings from cryptocurrency exchanges in response to the failure of crypto-friendly institutions.
In addition, Tether's supply on exchanges decreased by 28.9% to a 10-month low as investors grew more confident in it as a result of USDC's difficulties.
The data from Santiment is supported by Curve 3pool's dashboard, whose liquidity pool is severely unbalanced.
The display shows that USDC and #DAI make up more than 90% of the pool while USDT only makes up 8.61%. This indicates that cryptocurrency investors favor keeping USDT over other stablecoins.
As it is intended for the unbalanced pool to include equal balances of all three stablecoins, it reveals the stablecoin preferences of cryptocurrency investors during times of market turbulence.
Despite increasing confidence from cryptocurrency investors in the stablecoin, uncertainty over its reserves still exists.
The stablecoin issuer reached a settlement with New York authorities on the backing of its dollar reserves in 2021. With the failure of Terra's algorithmic stablecoin, UST, the amount of hedge funds betting against Tether increased.
Investors at the time were concerned that the stablecoin may collapse, thus USDT honored almost $10 billion in redemption requests during a two-week period.
In addition, there have been concerns about whether Tether was exposed to any of the crypto companies that have collapsed.
The CTO of Tether, Paolo Ardoino, has emphasized that the stablecoin issuer has no connection to any of these businesses, not even the troubled banks that support cryptocurrencies. The company also stated that it has been the subject of "outdated, incorrect, and misleading coverage and claims" in a recent statement.
