Little by little, Tether (USDT) has earned its place as the third criptomoneda by market capitalization, which exceeds $ 9 billion. However, what this causes the whales crypto accumulate USDT? Let’s see.
According to Tether Transparency, at the time of writing this publication, USDT has a market capitalization of US$ 9.759.742.337,71, of which US$ 5.737.847.550,67 circulating in the Blockchain of Ethereum.
This proves that this stablecoin is widely used in the market of cryptocurrencies, and whales are no exception.
Whales crypto can accumulate Tether?
Whales in crypto are known to be those that move the market when it to be able to remove or introduce large amounts of tokens at the market. Are largely more influential by the vote of governance, in the estimation of the tokens in small market capitalization, etc ..
However, stable currencies as USDT are not exactly a target of high risk to the whales, because they are designed to resist the action of the movement of prices, which is a main objective for the whales crypto.
In the same way, it is always good to take into account the distribution and centralization of tokens, in this case Tether.
Why use USDT?
Tether (USDT) is a criptomoneda designed so that each token is represented by a us dollar underlying.
Each token USDT is tied to a us dollar that is kept in the booking balance of Tether Limited and can be obtained through the platform Tether. Therefore, it is attractive for those who want to use cryptocurrencies but without as much risk of volatility.
All of this helps to that Tether be used at the level that is used, in addition to which has a presence in different Blockchains such as Omni, Ethereum, among others.
However, something particular is that in times of high volatility, some market players prefer to protect their money in the Tether, instead of Bitcoin. Is this the case now?
Activity of the whales with Tether
According to Whale Alert, during the period from 15 to 19 June 2020 have been reported 12 transactions a Tether for more than 207.000.000 USDT, with an approximate value of more than US$ 207 million.
Weekly summary of the activity of the whales crypto with USDT. Source: Whale Alert
What is interesting is that most of them were from Tether Treasury, or the reserve of Tether to exchanges. This implies that more than whales individual, are the exchanges that are demanding liquidity in USDT.
According to Glassnode, the exchanges have been accumulating USDT in record numbers. The historical maximum was April 22, but keep in mind that lately the growth has been registered an an explosive manner, such as shown in the table below:
Balance Tether USDT in exchanges. Source: Glassnode
For the time of the last update of this measure, in may, the balance sheet of USDT in exchanges was 1.472.681.040,80 USDT.
With the recent activities that have been observed at Whale Alert, we could say that the trend continues: a big part of the new USDT issued goes directly to the wallets of the exchanges.
The whales crypto that are not exchanges, and likely have your USDT wallets unknown are not so active lately.
In the last week, only 20% of the operations with USDT by whales in crypto are made from exchanges to wallets unknown. Furthermore, of the total weekly only the 24,35% of the USDT moved is accumulated. The rest took the wallets of exchanges.
If the exchanges are preparing their wallets, and reserves for greater liquidity of USDT, wants to say that they recognize the value of this criptomoneda and the high volume of transactions daily.