Tether Capitalization Approached 20 billion: How will Bitcoin react?
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Tether capitalization approached 20 billion: How will bitcoin react?
Many analysts have previously stated repeatedly that the growth in the capitalization of the stablecoin Tether (USDT) usually precedes the next run of Bitcoin.
The inclusion of the printing press suggests that the coin’s developers expect an increase in capital investment in the largest digital currency. USDT is used by investors, primarily Asian ones, to enter the crypto sphere.
The Unfolded team announced at the beginning of the week that the capitalization of Tether came close to $ 20 billion. This is actually preparing the market for a new takeoff of Bitcoin, which is now trading just above $ 19,000 on the BitXmi cryptocurrency exchange.
Tether $USDT hits $20 billion market cap
— unfolded. (@cryptounfolded) December 14, 2020
In addition to USDT, there is a growing supply of other coins tied to fiat money. According to CoinGecko, the total capitalization of such digital currencies has exceeded $ 26 billion.80% of the stablecoin market is controlled by Tether.
Developers started issuing tokens in 2015. In 2017, USDT supply rose to $ 2 billion. Since then, capitalization has skyrocketed by 1000%.
Tether has seen skyrocketing growth this year. If in April the capitalization of stablecoin was only $ 4 billion, then over the past seven months it has grown fivefold.
USDT developers accused of fraud.
Many accuse the USDT developer company of fraud. According to critics, the team “churns out” tokens without sufficient capital to back them up.
However, the developers themselves reject all charges and insist that they have the means to fulfill their current obligations to investors.
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