The world’s largest stablecoin, Tether (USDT) has extended its circulating supply following almost three months of reductions, in what could be a sign the crypto markets are slowly improving.
According to CoinMarketCap the first mint in almost three months happened on July 29, and there have been three more, with the latest on August 2. The USDT injections have been small, though, enlivening Tether’s market cap by just 0.7% or just under $500 million.
The Tether transparency report said, there is now 66.3 billion USDT in circulation. This stretches stablecoin to a total market share of around 43%.
Tether supply touched an all-time high in early May when it topped 83 billion USDT. The failure of the Terra ecosystem, ensuing crypto contagion, and large-scale redemptions forced the company to reduce the circulating supply, which fell 21% to a low of 65.8 billion in late July.
The rival company Circle increases the market share of its stablecoin USDC, which now commands a 36% slice with a $54.5 billion market cap. Cointelegraph reported last month, that USDC volume on Ethereum actually flipped Tether’s for a period as the number two stablecoin continues to catch up.
Over the weekend, Binance CEO Changpeng Zhao noted the number of stablecoins poised to re-enter the markets, stating:
“3 of the top 10 are stablecoins, meaning there is a lot of “fiats” sitting sidelines, ready to get back in. If people wanted to get out of crypto, most won’t hold stablecoins.”
Stablecoins now represent 13.6% of the entire crypto market capitalization, which is near its all-time highest levels
A cost-of-living crisis caused by rolling global inflation may have put the brakes on crypto investing and speculation for retail traders. Nevertheless, those living in countries with extreme inflation levels, have held onto USD-pegged stablecoins as a hedge against their own currencies.
Tether approved the benefits of holding stablecoins, stating that USDT “allows Argentinians to access a market that is truly global and liberates them from local black markets,” adding that it also “empowers them to hold Tether in ways that cannot be confiscated by the government, unlike local bank accounts.”
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