Tether (USDT) Pumps Out Over 400M Coins from Treasury
Tether’s issuer is once again emptying out the treasury, potentially setting up for another boost to Bitcoin (BTC) prices.
In the past days, Tether (USDT) increased its circulating supply by around 418 million tokens, which were held until now in the treasury. The already printed tokens were drawn back from circulation last fall, when the Treasury held as much as 600 million USDT. Now, the storage wallet has around 193 million tokens left.
In a series of transactions, the treasury was emptied out again, with some of the funds sent directly to Bitfinex, while other tranches going to unknown intermediary addresses. Rich List records show the Binance, OKEx and Huobi wallets received new funds on April 14.
The injection of new USDT follows a period of increased trading activity, where the current supply of USDT saw a record turnover. Each token was moving through the trading ecosystem more than 11 times in 24 hours, based on Stablecoinswar data. Now, the turnover speed has slowed down to around 436%. The increased supply would allow, in theory, even greater trading activity.
The new liquidity injections suggest that USDT is still the key to trading, and is seen as a preparation for a new rally in trading activity and prices. On Monday, the share of USDT trading for Bitcoin once again increased to above 80%. Trading volumes for the leading coin fell from recent levels of above $16 billion down to $10 billion’s equivalent.
Fiat volumes in US dollars fell to around 7%, from a recent peak of 14% after inflows of recent investments. In general, the activity in BTC has diminished following the recent rally above $5,400. On Monday, BTC prices inched up to $5177.79, bouncing off the $5,000 level again.
The additional USDT injected also reached altcoins, flowing most significantly into Ethereum (ETH), Litecoin (LTC), and EOS, with smaller inflows to Bitcoin Cash (BCH) and other leading altcoins.
The current rise in USDT usage shows that the biggest inflows happen on exchanges that see activity from Chinese traders. The buildup of funds on OKEx and Huobu show that USDT is one of the avenues to circumvent capital controls, and move funds between exchanges.
The evidence for this is the rising OTC price of USDT against the Chinese yuan, suggesting a demand and inflows into USDT from fiat positions.