USDT dominance rises
Over the weekend, Tether (USDT) experienced a notable surge, aligning with a broad sell-off across the cryptocurrency spectrum.
This pattern was hardly a fluke, hinting at future market movements.
Typically, USDT’s market share increases amidst market uncertainty and fear, leading to widespread liquidation of cryptocurrency holdings.
This trend was clearly visible during the recent cryptocurrency downturn, where USDT's value spiked, breaking past a major resistance level before experiencing a correction.
Last week, amidst the market turmoil, USDT's market domination peaked at 6.77%. It climbed to 5.83% on August 12th, before settling at a current rate of 5.60%.
Since March, USDT has been on an upward trajectory, reflecting underlying market vulnerabilities since that time.
Despite expectations for a bullish cryptocurrency market in August, recent global financial events have heightened the likelihood of further sell-offs.
This scenario could further bolster USDT’s standing in the coming weeks or months.
The recent downturn, sparked by Japan's decision to raise interest rates, has put the markets in a tight spot, prompting a widespread liquidation of volatile assets.
Experts have delved into this issue, agreeing that the full impact of this adjustment remains uncertain and could continue to affect the market.
Should more market turmoil ensue, we might see an increase in sell-offs.
In such an event, USDT could gain even more prominence as investors seek to mitigate risks to their portfolios.
The analysis showed that, as of August 11th, whale accounts possessed 16.52 billion USDT, marking a 0.18% decrease over the week. Meanwhile, investor accounts amassed 11.47 billion USDT, evidencing a 1.91% increase from the previous week. Retail accounts held 24.23 billion USDT, showcasing a 1.74% decrease from the week before. The data indicates that both whales and retail are reducing their stablecoin positions, whereas investors are on the rise.
Though this might not directly imply a rush to safety, it unveils a potentially more intriguing trend.
Cryptocurrency investors currently have approximately 52.22 billion USDT at their disposal, potentially ready for reinvestment should the right conditions emerge. This amount is expected to rise if the economic situation deteriorates further.
