Bitcoin’s new highs come amid lots of new money pouring in via stablecoins.
According to Tether’s official transparency data, the USDT market cap crossed a $17 billion mark for the first time, hitting over $17 billion in total assets.
Tether’s market cap has been growing exponentially in 2020. As of mid-September, Tether’s market cap saw nearly a four-fold increase since the beginning of the year, surging above $15 billion from around $4 billion.
According to data from crypto analytics firm Messari, USDT saw a notable increase from August 2020 to date. As such, USDT added more than $5 billion in market cap over the past three months.
According to Ki Young-Ju — CEO of crypto data platform CryptoQuant — the latest crypto rally is being driven by an increased amount of deposits in stablecoins like USDT. On Nov. 5, he pointed out:
“Again, the $BTC price soared right after the number of stable coin deposits increased.”
Ki Young-Ju previously drew attention to this correlation in October, noting that the influx of stablecoin deposits was “helpful to predict the BTC surge at the end of July.”
Data from CryptoQuant also shows stablecoin inflow transactions hitting new 2020 highs on Oct. 18, exceeding 60,000 transactions. The number of such transactions has fallen since, however, accounting for about 30,000 by the end of October.