Tether USD (USDT) is the leading stablecoin in the cryptocurrency market and acts as the main fiat ramp to cryptocurrencies. USDT’s high liquidity and adoption as a fiat ramp make it an important indicator of overall interest in crypto.
Anticipating a remarkable bull run in the last weeks, USDT saw a massive increase of $1.59 billion in market capitalization in a month. Moving from a $83.43 cap on October 3 to a $84.93 market cap on November 2.
Notably, the 24-hour registered volume also increased from $32.69 billion to $45.41 billion at the time of publication.
Tether USD (USDT) 1-month market capitalization. Source: CoinMarketCap
Interestingly, last week’s surge was one of the most meaningful capital inflow to Tether USD in the period. USDT market cap increased by more than $500 million in the last seven days, for 31% of this month’s inflow in dollars. The volume benchmark also indicates a more liquid market by press time than it was one week ago.
Tether USD (USDT) 1-week market capitalization. Source: CoinMarketCap
USDT main fiat on-ramp and off-ramp
Essentially, a market cap increase to USDT during a bull rally usually means that money is coming from fiat and traditional finance to crypto. Cryptocurrency traders and investors, being retail or institutions, use Tether as the main fiat on-ramp in the market.
Nevertheless, a USDT market capitalization surge during an overall price drop usually means the opposite. As it indicates, crypto investors could be selling their coins with the intention to off-ramp back to fiat and to traditional finance.
All things considered, Bitcoin (BTC) is trading in a consolidation range, some altcoins have broken out from historical downtrends, and the total crypto market capitalization is at yearly highs, superior to $1.28 trillion. This indicates a capital inflow to cryptocurrencies and an uptrend continuation.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
