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Are crypto whales accumulating USDT?

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Gradually, Tether (USDT) has earned its place as the third largest cryptocurrency by market cap, exceeding $ 9 billion. However does this make crypto whales accumulate USDT? Let’s see.

According to Tether Transparency, as of this writing, USDT has a market capitalization of $ 9,759,742,337.71, of which $ 5,737,847,550.67 is circulating on the Ethereum Blockchain.

This proves that this stablecoin is widely used in the cryptocurrency market, and whales are no exception.

Crypto whales piling up Tether?

Crypto whales are known to be the ones that move the market by being able to withdraw or introduce large amounts of tokens to the market. They are largely more influential through the governance vote, in the valuation of small market capitalization tokens, etc.

However, stablecoins like USDT are not exactly a high risk target for whales as they are designed to resist the action of the price movement which is a prime target for crypto whales.

Similarly, it is always good to take into account the distribution and centralization of tokens, in this case Tether.

Why use USDT?

Tether (USDT) is a cryptocurrency designed so that each token is represented by an underlying US dollar.

Each USDT token is tied to one US dollar that is held in Tether Limited’s reserve balance and can be obtained through the Tether platform. Therefore, it is attractive for those who want to use cryptocurrencies but without so much risk of volatility.

All this helps Tether to be used at the level it is used, in addition to having a presence in different Blockchains such as Omni, Ethereum, among others.

However, something particular is that in times of high volatility, some market players prefer to safeguard their money in Tether, rather than Bitcoin. Is this the case now?

Whale Activity with Tether

According to Whale Alert, during the period from June 15 to 19, 2020, 12 Tether transactions have been reported for more than USD 207,000,000, with an approximate value of more than US $ 207 million.

Weekly summary of crypto whale activity with USDT. Source: Whale Alert

The interesting thing is that most of them were from Tether Treasury, or Tether’s reserve to exchanges. This implies that more than individual whales, it is the exchanges that are demanding liquidity in USDT.

According to Glassnode, exchanges have been accumulating USDT in record numbers. The all-time high was on April 22, but keep in mind that lately growth has been registered in an explosive way, as seen in the table below:

Tether USDT balance on exchanges. Source: Glassnode
Tether USDT balance on exchanges. Source: Glassnode

At the time of the last update of this measure, in May, the overall balance of USDT on exchanges was 1,472,681,040.80 USDT.

conclusion

With the recent activities that have been observed in Whale Alert, we could say that the trend continues: much of the new USDT issued goes directly to the wallets of the exchanges.

Crypto whales that are not exchanges, and that probably have their USDT in unknown wallets are not as active lately.

In the past week, only 20% of crypto whale operations with USDT were made from exchanges to unknown wallets. Likewise, of the weekly total only 24.35% of the USDT moved accumulated. The rest were carried to the exchange wallets.

If the exchanges are preparing their wallets and reserves to have more USDT liquidity, it means that they recognize the value of this cryptocurrency and the high volume of daily transactions.



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