Mati Greenspan, a seasoned cryptocurrency trader, analyst and founder of the Quantum Economics newsletter, has noticed a rapid upsurge in the stablecoin supply.
Does eleven-digit supply really matter?
In his recent tweet, Mr. Greenspan revealed the jaw-dropping statistics on the total stablecoin supply. It surged almost 100% in less than six months in turbulent 2020.
Mr. Greenspan asked his Twitter audience whether we should be concerned about such an impressive rally in stablecoin market capitalization.
Legendary cypherpunk, CEO and co-founder of the Blockstream development studio, which works on the Bitcoin (BTC) network and other related solutions, was one of the first to reassure Mr. Greenspan. He outlined that these metrics represent the instrumental aspect of the digital assets segment more than anything else:
Tether? No, it's just fuel. And we don't know USD balances of exchange trading accounts and it's likely more.
He believes that the United States Dollar Tether (USDT) is just fuel for cryptocurrency exchanges and its statistics can say very little about the real balances of trading accounts.
However, one of the first Bitcoin (BTC) developers believes that these balances store 'likely more' money in USD equivalent.
Tether (USDT) is on a march
As covered by U.Today Crypto News, automated analytical tools have detected the rapid expansion of the USDT supply. One week ago, the Skew analytical group, which works in crypto derivatives, noticed that its market capitalization is targeting the $10 Bln level.
The latest impressive growth from the USDT market cap can be mainly attributed to its Ethereum-based and Tron-based versions. Two days ago, another 100M USDT were minted by Tether on the Tron (TRX) blockchain.
It is also worth noticing that every Tether (USDT) transaction on Bitfinex migrated to the OMG Network, Plasma infrastructure on top of the Ethereum (ETH) blockchain.