As a researcher with years of experience in the dynamic world of cryptocurrencies, I find myself increasingly intrigued by the recent surge in Tether (USDT) inflows to exchanges. This trend aligns with my observations of the ongoing crypto bull rally and it’s hard not to feel a sense of anticipation for what lies ahead in 2025.
The significant rise in Bitcoin‘s (BTC) value to historic highs is invigorating the cryptocurrency market, and with the end of the year approaching, there’s a growing optimism among investors about its future prospects.
Behind the scenes, there’s been a notable increase in Tether (USDT) deposits into trading platforms. This trend with the stablecoin is consistent with the ongoing cryptocurrency market uptrend, which has persisted for over two months.
USDT’s Daily Inflows to Exchanges
Over the last eight weeks, around 40 million USD worth of USDT (a type of digital currency) has been moving daily into cryptocurrency trading platforms on average, according to recent findings by Santiment. This continuous flow of funds plays a significant role as it powers numerous high crypto price increases, boosting market optimism and liquidity.
As 2024 draws closer to its end, the persistent inflow of this stablecoin indicates a possibility for continued growth, as investors are likely to invest more in cryptocurrencies due to this trend.
As a crypto investor, I’ve noticed an exciting evolution in the global stablecoin market. In fact, it’s now becoming more popular than Bitcoin for everyday transactions, as suggested by Chainalysis’ report. Amidst this growth, new contenders like Ripple‘s recently launched RLUSD are joining the fray, while existing stablecoins are upping their game to stay competitive.
As a crypto investor, I’ve noticed that among all the players in the stablecoin market this year, Tether (USDT) has undeniably taken the lead. A year ago, its circulation was at 90 billion, marking a substantial growth of 50 billion over a period of 12 months. Now, USDT commands an impressive 66% share in the $212 billion stablecoin market and has consistently held the number one position in trading volumes throughout 2024.
Stablecoin Potential
According to a recent report by Standard Chartered and Zodia Markets, there’s a strong possibility that the use of stablecoins could increase significantly. They foresee stablecoins potentially making up between 1% and 10% of the US M2 money supply, as well as a substantial portion of foreign exchange (FX) transactions. The firms suggest that the usefulness of stablecoins is no longer limited to cryptocurrency trading; instead, it extends to areas like cross-border payments, payroll management, trade settlements, and remittances.
The report highlighted that stablecoins could address inefficiencies in traditional financial systems, offering faster and cheaper transactions. Regulatory clarity, particularly from a possible Trump administration in 2025, is seen as a key factor to unlocking their full potential. Besides, adoption in emerging markets like Brazil and Nigeria is already rising, driving further demand.
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2024-12-18 22:52