Nearly half a billion USDT has been created over last 48 hours on back of Bitcoin rally
Tether, the USD-linked stablecoin, is being created at a rapid pace as Bitcoin prices surge through the $13,000 mark. Data shows that over the last 48 hours, nearly 500 million new USDT tokens have been created. Most of these new tokens have been sent to exchanges, with Binance receiving more than any other exchange. Binance has been sent a little less than 127 million USDT over the last two days, while other exchanges like Huobi have been sent smaller amounts. At the time of writing, the Tether Treasury wallet is reported to have 280 million USDT, as most of the newly created tokens have been sent to exchanges, as well as other address.
Why it matters: Bitcoin's rise past the $13,000 mark may have far reaching consequences. While many 'risk assets' are currently under pressure, Bitcoin seems to be picking up buying momentum. Tether has grown to be the third most valuable token when measured by market cap, with only Ethereum and Bitcoin having a larger value. Whether or not the tokens are actually backed by a sufficient amount of US dollars is anyone's guess, but at the moment, USDT continues to be a popular token. It would appear that higher Bitcoin prices mean more USDT, and given that relationship, there may be many more tokens hitting the markets soon.