Tether (USDT) Treasury Balance Shrinks below 500M Coins

USDT coins are leaving the treasury wallet and spreading to other exchanges, but the biggest tranches usually end up on Kraken.

The Tether (USDT) treasury continues with regular daily withdrawals, with the funds split into tranches of different sizes. These actions have quickly depressed the Treasury balance to around 493 million USDT.

One of the biggest tranches (14,985,000 USDT) passed through an intermediary address and was then injected into a Kraken address. What started as tentative transactions turned into a regular inflow of coins in recent weeks, with tranches growing in size.

The treasury held over 750 million USDT around October 2017 after the coin’s liquidity shrank dramatically. But in the following months, a significant percentage were put back in circulation, initially directly through Bitfinex.

One possible explanation is the current premium for USDT, which trades at around $1.01 on Kraken. At the same time, the exchange has Bitcoin (BTC) trading at about $3,589 on the BTC/USD markets. In effect, one may cautiously sell USDT to purchase BTC a bit cheaper. There is a slight premium on the BTC price in USDT. Currently at around $65.82, this premium has often risen above $100, reaching as much as $700 during USDT anomalies.

USDT trading is expanding again, making up more than 64% of all BTC trades, as per CryptoCompare data. About 23% of the entire market hinges on USDT pairs, which also affect most major altcoins and some tokens, according to data from CoinMarketCap. This shows that any USDT liquidity injected may boost the influence of the leading stablecoin. At present, despite the growing influence of stablecoins such as the Gemini Dollar (GUSD) and Paxos (PAX), USDT accounts for more than 92% of the stablecoin market.

Right now, the biggest holder of USDT is one large wallet possibly belonging to Binance and containing 568,473,230 USDT. However, exchanges like Bittrex and Huobi are also registering accelerated inflows of USDT.

https://twitter.com/kerskine/status/1085196591034761216

Kraken markets currently show that USDT buying and selling are balanced, raising the question of who is buying up the coins. The crypto community has noticed the USDT movements, but there is no clear explanation as to why. The Kraken address used to store USDT has now ballooned to more than 31 million coins, while the daily trading in the USDT/USD pair is around $7.3 million. If cashing out is one of the reasons, then Kraken is still a rather slow off-ramp, allowing only for small daily sales.

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