The printing of new USDT for the Bitcoin network stopped a month ago, but the weight of the existing assets affects the market with their weight.
The printing of new USDT based on the Bitcoin network has stopped about a month ago, with an abrupt burning of 30 million tokens. But in March, Bitcoin trading keeps getting affected by USDT coins, which are spreading around exchanges and making up to 30% of the daily trading volumes on the crypto market.
The trading volumes of Bitcoin have dwindled to about $6 billion in 24 hours. And while during peak times volumes reached $20 billion in 24 hours due to US and Japanese trading, lately the pairing with USDT is one of the most influential sources of volume and price setting.
The latest charts on Bitcoin’s trading reveal that the weight of dollar-based trades has been offset by the increasing influence of Bitfinex, and now USDT volumes look prepared to overtake the USD/BTC pairing. USDT trading volumes have increased continuously, and now not only have major weight in terms of Bitcoin trading, but may be affecting other coins.
The volumes on OKEx and Binance also rising, although Bitfinex still keeps its leading position. USDT trading is now more active than pairings with Ethereum, taking up more than 13% of total daily volumes.
Coinbase Hit With Two Lawsuits in As Many Days
Tokens Affecting Ethereum Directly
Ethereum is one of the assets that is traded against USDT on many exchanges. But now, the coin may get a further boost from especially created USDT tokens based on the Ethereum network. For a month now, Ethfines has opened to deposits in USDT and EURT from Ethereum wallets.
In the past month, about 60 million tokens were created. And in the last few days and hours, some of those tokens were moved to either Bitfinex or Ethfinex wallets. The movement of ERC-20 USDT is harder to trace, and there are numerous addresses affected. Moving those tokens between exchanges would be extremely easy.
Moving to Fiat May be More Difficult
Even as Bitcoin appreciates or seems to hold a price, the increasing influence of USDT may mean it may be temporarily, or permanently more difficult to sell Bitcoin for cash. Instead, while trading may be active, taking profits from BTC may have additional hurdles, at least when it comes to using exchanges.
Tethers and Litecoin
Because Litecoin has many similarities to the Bitcoin network, the Tether company has announced it is testing the capabilities of using the Omni layer on top of the Litecoin blockchain. The project was announced in the summer of 2017, but so far the actual tokens have not appeared. Yet issuing yet another breed of Tethers is at least a theoretical possibility.
Right now, Litecoin is among the more famous coins paired with the classical USDT. Other coins affected include DASH, EOS, NEO, and OmiseGo (OMG).
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