Cryptocurrency enthusiasts remain somewhat hesitant to trust Tether. As the issuer of the largest stablecoin in the industry, the company has to deal with FUD and questions regularly. It now seems the growth of USDT transfers is slowing down, as is the number of new addresses.
USDT Transfers Dip Strongly
It was a matter of time until Tether’s USDT would start to lose a bit of market traction. The growth sustained over the past year and a half has been astonishing. However, all good things must come to an end eventually. The current decline is not too spectacular, but there is more to this asset than meets the eye.
More specifically, Tether notes an ongoing decrease in the number of USDT transfers. Based on the seven-day moving average, the decline is tangible. This decline has continued since mid-December 2020. At that time, Tether recorded over 250,00 transactions per day. Today, that number sits at just 213,233. Not a big difference, although it is still a decline by over 15%.
With statistics like these, one has to put everything in perspective. The current USDT transaction rate is on par with figures recorded in July of 2020. The growth past 225,000 daily transfers appears to slow down just a bit. Whether this will influence the price of Bitcoin or Ethereum is always tricky to predict.
After all, many traders claim Tether’s transactions directly pump the price of BTC and ETH. Such claims are outlandish, as there is no proven correlation between USDT and the market trend. While the stablecoin is the primary asset to trade against Bitcoin and Ethereum, its influence is minimal. As such, a dip in transaction volume will not necessarily affect either market for the foreseeable future.
New Tether Addresses Decrease
Coinciding with the temporary decline in USDT transfers is an ongoing decrease in new Tether addresses. Again, this is not entirely surprising given the growth Tether has witnessed over the past 18 months. Attracting new users is no easy feat, and growth will stagnate during specific periods. One such period is currently ongoing.
Statistically, there are still over 25,000 addresses being added every single day. A significant amount, considering this is a stablecoin with a value that can’t go up. It is a further confirmation of how popular Tether and USDT are even today. Given the ongoing competition among stablecoins, remaining on top will become more difficult as time progresses.
The big question is how the top cryptocurrency markets will perform if the appeal of USDT were to dwindle for a few weeks. Bitcoin seems more dependent on this asset, as everything else is tradeable against BTC. An interesting period looms ahead for all markets.