The total supply of Tether, which has experienced a rapid growth since the year 2017, reached a new historic maximum, and everything points to that Ethereum is, in part, responsible for what happened.The total supply of Tether reached a historical maximum of 4,27 billion units. Ethereum is one of the main factors of growth in such offer, and this is because, although from the end of 2017, they could be issuing Tethers in the blockchain of Ethereum, but it was not until early this year that Ethereum began to influence the strong growth of the total supply.
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Reasons that drive you to Ethereum
At the time of writing this news the offer a total of 4.1 billion Tethers, of which 2.54 billion were created in the Blockchain Omni, and 1.56 trillion created in the Blockchain of Ethereum. The growing interest of Ethereum in the Tether may be guided by various factors; Tether Limited, the manager of the Tether, you could try to reduce the risk of continuity by limiting the dependence of Omni and Bitcoin.On the other hand, the main use of the Tether is the trade and arbitration, and for this type of use Tether might be more practical for the generation of blocks every 15 seconds on Ethereum, in comparison with blocks generated every 10 minutes in Bitcoin, not to mention that the time of confirmation of withdrawal of deposits to tokens created in Ethereum are faster in comparison with Bitcoin.Considering that the above features can be quite attractive among traders assets, it is not unreasonable to think that the issuance of Tether in Ethereum will continue to grow in connection with the issuance in Omni. In addition, this creates the perfect scenario for the demand of the market for the Tether to increase progressively.The growing market preference for Tether is evident if we remember that despite the creation of new tokens anchored to the price of the dollar; as TrueUSD, Paxos, USD Coin, Dai, Gemini Dollar, and StableUSD; the dominance of the Tether between its competition has always been superior. Currently the token is placed in a 81,77% dominance in the market compared to your competitors.Image: stablecoinswar.com
Could you Tether to influence the price of Bitcoin?
The relationship between the emission of the Tether with respect to the price of Bitcoin is a topic that is disturbing the ecosystem, due to the lack of clarity on the financial statements of USDT and the direct relationship with Bitfinex. The office of the prosecutor of New York was filed, in the Supreme Court, evidence against Tether and Bitfinex, for allegedly masking losses by $ 850 million. And although it also showed that the token was not fully backed by the dollar, this is not affected in its growth are concerned.Due to the gray area in which it is located Tether as a quotation currency for trade in the exchange houses, there are two scenarios in which one might think that the price of Bitcoin could be affected: when investors buy Tether using fiat money by volatility in the market, which increases the emission and demand of the token; and if Tether Limited comes to issue tokens independently, this will increase the total supply of the market.