The exchange reserves of Tether (USDT), a popular stablecoin, have reached a seven-month high of $9.99 billion, marking a bullish sentiment among investors. This comes amid a backdrop of regulatory uncertainties and an 18-month consecutive decline of the overall stablecoin market cap to $123.8 billion.
Despite the broader market downturn, USDT has maintained its position as the largest stablecoin by market cap, currently standing at $83.5 billion. The surge in exchange reserves indicates that investors are increasingly using USDT as a safe haven, with holdings having risen by 40% since June.
Adding to the complexity of the stablecoin market was last year's controversial move by Alameda Research. Amid the bankruptcy of crypto trading platform FTX, Alameda redeemed $38 billion worth of Tether, as highlighted by Coinbase (NASDAQ:COIN) director Conor Grogan.
In addition to the reserves held on exchanges, there is also a significant amount of Tether circulating outside these platforms. According to available data, approximately $30 billion worth of Tether is currently in circulation outside exchanges.
While the rise in USDT exchange reserves suggests bullish sentiment among investors, it contrasts with the broader decline in the stablecoin market cap over recent months. This trend points to the ongoing impact of regulatory uncertainties on the market and highlights the role of Tether as a perceived safe haven within this volatile landscape.
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