Tether (USDT) On Exchanges Hits 6-Month High – Here’s What’s Driving This Sudden Stablecoin Accumulation

Santiment is reporting an interesting trend around the stablecoin Tether (USDT) that could have implications for the broader crypto market. Over the past few months, the amount of Tether on exchanges has increased substantially, going from accounting for 17.6% of the total supply to now representing 24.7%.

This is the highest proportion of exchange-based Tether in approximately 6 months. A growing supply of USDT on exchanges indicates there is an expanding pool of stablecoin capital that could potentially be deployed to purchase other cryptocurrencies like Bitcoin.

In addition, the 10 largest Tether addresses, likely exchanges and major crypto traders, have increased their USDT holdings considerably over the last 3 months. These key players in the market have boosted their Tether reserves from $7.30 billion to $9.42 billion.

Source: Santiment – Start using it today

This build-up suggests they are stockpiling stablecoins in preparation for potential trades. More Tether in the hands of large-scale investors and exchanges means more dry powder available to amplify volatility.

At the same time, Tether’s trading volume has jumped over 15% in the last 24 hours. Heightened trading activity of stablecoins like USDT often precedes increased volatility and trading volume for cryptocurrencies as a whole.

This all comes while Bitcoin is still trading around $27,500, which is towards the lower end of its recent range. The takeaway is that the expanding stablecoin supply and activity among major exchanges and traders likely signals heightened bullishness and more crypto trading volume ahead.

If these influential market participants deploy their Tether stockpiles into Bitcoin and other cryptocurrencies, it could very well drive prices higher. The rapid growth in exchange-based Tether indicates traders may be gearing up for a period of increased volatility in the crypto markets.

We recommend eToro

74% of retail CFD accounts lose money.
Active user community and social features like news feeds, chats for specific coins available for trading.
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy thetrades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
eToro offers staking for certain popular cryptocurrencies like ETH, ADA, XTZ etc.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com


Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!