Printing money, additional issuance, thunderstorms? Wake up, USDT is not as fragile as you think

In the past week, Tether issued an additional 540 million USDT

Tether's market value breaks through $6 billion

Tether newly prints 120 million USDT on Ethereum (authorized but not issued)

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Tether printed more money in March than could fit on one screen

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Data source: Coinmarketcap

On the other hand, the Federal Reserve announced on March 23 that in order to ensure market operation and monetary policy transmission, it will buy U.S. bonds and MBS on demand in an unlimited amount, which is "unlimited QE". At the same time, affected by the epidemic, major economies are implementing interest rate cuts and money printing plans to resolve the liquidity crisis.

stable currencystable currencyTether is not alone in the market printing money crazily.

According to The Block, the growth rate of USDC reached 33% in the first quarter of this year, and its market value is close to 1 billion US dollars. The growth rate is basically the same as that of USDT. The cumulative transaction volume of the stablecoin market in the first quarter exceeded $90 billion, an increase of 8% from the previous quarter and a 280% increase from the same period last year.

From this point of view, the stable currency market led by Tether seems to be only following the footsteps of the general environment. The Federal Reserve took the lead in releasing water to boost market confidence, and Tether followed suit and became the "Federal Reserve" of the currency circle.

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Do you still remember the USDT pull in October 2018?

On October 15, 2018, Bitcoin fluctuated by 20% in a single day, once approaching a high of $7,600. The reason for the skyrocketing price at that time was that there were rumors that Tether crashed and users ran out, and USDT once had a negative premium of nearly 10%.

Insiders joked that even short positions can be cut ten points by USDT. Since there was the first time, some people will naturally worry that USDT will stage a similar drama again.

But Tether may be stronger than most of us think.

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according toTokenviewAccording to data analysis, most of the newly issued USDT will eventually flow into mainstream exchanges led by Huobi, Binance, and Bitfinex, and most of them will be transferred to the commonly used wallet addresses of exchanges within 24 hours after printing money.

On the other hand, although Tether has long been controversial because of its opacity and ambiguous relationship with Bitfinex. However, USDT is still the most commonly used choice in the stablecoin market, accounting for more than 80% of the stablecoin market value for a long time.

Although it is a bit exaggerated to describe USDT as Too big to fall, at the current market node, at least in the short term, we do not see signs of Tether's collapse.

Of course, the old-fashioned question remains, if Tether issues USDT in excess, how long can it last? At present, no one may be able to give an accurate answer. After all, USDT has become the hard currency in the cryptocurrency market. In a sense, USDT has even replaced some functions of Bitcoin.

And just when we were thinking about when Tether will be thundered, the market value of USDT has quietly climbed to the fourth place in the market.