Santiment, an on-chain data source, has now reported that the availability of USDT on cryptocurrency exchanges has reached a six-month high. According to CoinMarketCap, “the percentage of Tether stablecoins on marketplaces has grown to 22.5 percent, the highest level in more than six months. This quantity of supply equates to $8.99B, demonstrating an increasing degree of purchasing power gathering on exchanges.”
As per the data source, this shows “greater purchasing power on the part of brokers and dealers.” In response to rising demand, Tether has maintained its enormous USDT printing program throughout the year. Tether has released stablecoins worth a total of $4 billion in the past month itself. Tether, which has maintained its position as the fourth-best cryptocurrency, just reached a market capitalization of $77.4 billion, having increased from a market capitalization of less than $70 billion in mid-October.
Furthermore, the quantity of tokens in the cryptocurrency market has increased significantly in 2021. USDT supply has increased fourfold from $20 billion to over $80 billion over the course of the year. Even yet, Tether has been subjected to a barrage of charges that it has misrepresented the proportion of its reserve to the number of tokens it has released.
While professing to match USDT 1:1 to the US Dollar, others have claimed that the stablecoin issuer just generates USDT out of nothing. One of its most important clients even claimed getting new stablecoins in exchange for other cryptocurrencies from the company. Tether, on the other hand, has consistently refuted such reports, claiming instead that all of its reserves are exactly as they should be.
According to the company’s website, it is “100 percent guaranteed by reserves, which comprise conventional currency and marketable securities, as well as other resources and receivables, as may be essential.”
Many prominent authorities, including US Senators Elizabeth Warren and Sherrod Brown, have voiced their displeasure with this very controversial situation. According to Warren and Brown, who spoke at a recent Senate committee, stablecoins are “shady” and “magic money,” and that they are neither decentralized nor verifiable, despite their claims to the contrary.
The ratio of #Tether stablecoins on exchanges has risen to 22.5%, which is the highest level in over 6 months. This amount of supply converts to $8.99B, indicating a rising level of buying power accumulating on exchanges. https://t.co/Ew9XWwqO2N pic.twitter.com/EjTwvQXOE2
— Santiment (@santimentfeed) December 17, 2021
The cryptocurrency participants who appeared as expert testimony at the hearing were forced to express opposing viewpoints on how digital currencies should be controlled. Some requested assistance, while others were subjected to rigorous monitoring and the threat of retaliation.
Despite this, the adoption of Tether by political parties and other organizations has not been hampered by these incidents. Tether has just been designated as the official currency of Myanmar by the country’s shadow government, which is led by deposed leader Aung San Suu Kyi.
According to Tether, the decision by the parallel government is “a tribute to the strength of the United States dollar and its potential to offer a shelter for inhabitants of the globe.”