Many cryptocurrency enthusiasts expect Tether’s USDT to influence the cryptocurrency prices directly. While there is some correlation between assets, the influence of this stablecoin remains unclear. As its number of exchange deposits hits a low, things are bound to get very interesting.
Tether Exchange Deposits Dry Up
It is an exciting time for all significant cryptocurrencies and stablecoins on the market. Tether’s USDT remains the largest pegged currency by market cap yet is slowly losing some ground. More specifically, its exchange deposits are dwindling, resulting in a monthly low of 638 deposits per hour. Not the most impressive number, but the asset still has more than sufficient liquidity.
It is not the first time such low levels are realized either. The overall exchange deposits for UST have been going up/down over the past few months. It does not seem to follow the overall Bitcoin price trend either, which may surprise many traders. Moreover, the current figures are far removed from what the industry saw several months ago.
With Tether, it may be a matter of time until the exchange deposits return to the levels of early 2021. At the time, it was not abnormal to see over 1,000 deposits per hour. Whether that will lead to an increase in overall volatility is difficult to predict. Tether’s USDT is traded against all major currencies these days and is not a factor affecting just the Bitcoin price either.
Moreover, one has to consider that there are other stablecoins on the market as well. The likes of USDC have made their mark on the trading sector in recent months. Just because the USDT deposits are going down doesn’t mean the inflow of stablecoins is drying up entirely. There will be more than sufficient trading liquidity to go around, with or without USDT.
Bitcoin Realized Cap Hits An All-Time High
It is always crucial to look at the many different metrics affecting the cryptocurrency landscape. In the case of Bitcoin, there is a new all-time high where the realized cap is concerned. A positive sign for the world’s leading cryptocurrency, as the Bitcoin price often dictates the pace for all other cryptocurrencies on the market.
For those unaware, the realized cap values different parts of the supply at different prices instead of using the daily close. Every UTXO is assigned a value by the last time it was moved across the network. Holding Bitcoin for the long term will often yield better results. Dormant BTC supplies will often bring the realized cap down a bit, as the UTXO is valued at a much lower price point. Keeping that in mind, it is impressive to note a new all-time high at this stage.
As Bitcoin attempts another push toward $60,000, it will be intriguing to see what will happen to all markets over the coming days. There is a lot of market potential waiting to be unlocked, yet there are never any guarantees as to what may happen in the near future. Moreover, it remains unclear what impact the USDT situation may have on all of this.