Tether supply growth stalls as Bitcoin price falls

From June 2 to June 21, Tether (USDT) supply remains at around $64.4 billion. The dynamics reflect subdued demand for the stablecoin from clients.

In an interview with The Block, Tether’s chief technology officer Paolo Ardoino said that the current situation is explained by a decline in open interest in the Bitcoin futures market.

USDT plays the role of the main stablecoin on most derivatives exchanges, he added.

The report notes that after reaching a peak above $20 billion in mid-May, open interest by June 18 fell to $13 billion. The decline occurred as Bitcoin’s price retraced from near $65,000 in mid-April to current $34,000.

Ardoino noted that the issuance of stablecoins is carried out in line with market conditions, and demand for them often reflects the dynamics of Bitcoin price surges and declines.

According to Messari, at the time of writing, the capitalisation of stablecoins stands at $106.4 billion. USDT accounts for 60.4% of the total market supply. The share of USD Coin (USDC) from June 2 to June 21 rose from 21.8% to 22.9%.

On May 24, USDC surpassed $20 billion.

On May 26, the total market capitalization of stablecoins rose above $100 billion.

Follow ForkLog news on VK!