Tether, the largest stablecoin in the crypto market, saw its trading volume skyrocket earlier this week to levels not seen in over two months. On Monday, Tether’s 24-hour transaction volume spiked to a staggering $47 billion, more than quadrupling from $12 billion on Sunday.
This enormous surge in volume appears to have been fueled by false rumors that the SEC was on the verge of approving a spot Bitcoin exchange-traded fund (ETF). The speculation caused volatility in crypto prices as investors piled into the market, hoping to benefit from an ETF approval. With so much uncertainty, many traders turned to the relative stability of Tether to shelter their capital without completely cashing out of the crypto space.
As Tether trading activity exploded, blockchain data showed that the largest Tether whale wallets were accumulating tokens during the mania. The top 10 largest wallets now hold a combined 25% of the total Tether supply, highlighting demand from major crypto holders.
The heightened interest comes at an auspicious time as October is historically the most bullish month for crypto returns. Moreover, October marks the birthday month of Tether itself, which was first launched 9 years ago in October 2014. Now the undisputed leader among stablecoins, Tether has grown to a market capitalization of over $83 billion.
While Tether volume has cooled somewhat from its peak, falling 17% over the past day, it remains elevated at around $38 billion in 24-hour transactions. This suggests crypto investors are on alert and ready to take action around the next potential catalyst. If Tether’s October trading is any indication, increased stablecoin activity may signal heightened crypto buying interest in the near future.
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