Tether: How Its $2 Billion USDT Minting Impacts Ethereum’s Success In The Bull Market
Despite the recent negative developments in the crypto market, sentiment seemed to be somewhat upbeat as Tether, its stablecoin, and some of the major cryptocurrencies have shown resilience over the past couple of days.
collapse large banks have significantly influenced the stablecoin market, and Circle’s USDC suffering depeg, which forces smart money to flee USDC in favor of other stablecoins.
Tether is capitalizing on the turmoil in the USDC market as the organization mints over $2 billion on the Ethereum and Tron blockchains.
WhaleAlert, a cryptocurrency wallet tracker, recently paid attention to the mint 15 hours ago. Capital outflow is already happening on USDC markets, the recent minting of Tether will boost demand for the stablecoin.
Tether minting: what does it mean for Ethereum?
The minting of stablecoins on the Ethereum blockchain is a move by Tether that anticipates an increase in demand for USDT.
In accordance with Nansen.aistablecoin diversification comes after the subsequent collapses of Silvergate, Silicon Valley Bank and Signature Bank.
The recent minting of Tether could give the top altcoin a much-needed boost in price in the medium to long term.
Image: Binance Academy
In accordance with CoinGecko, Ethereum is up over 2% on the daily timeframe. Even though the price action is comparatively smaller than yesterday, this is a welcome addition for investors to add to their portfolios.
On the other hand, USDT is still the undisputed king of the stablecoin market. Recent CoinGecko Update stablecoin market research shows that USDT’s market dominance rose 2.3% in January to 49%.
About stagnation and rejection
The top altcoin is currently trading on a red candle, which may signal the start of profit taking in the short to medium term. If the bulls can overcome the selling pressure that is present at high prices, the altcoin could retest the resistance at $1,778.99.
A break of the latter could push prices to test $1,828 in the medium term.
With more USDT on the market and the possibility of higher market dominance, the attractiveness of ETH for investors is growing. However, this is still a guess as the probability of the coin falling is equal.
The current market value of Ethereum is $1,700, however, the price is currently facing significant resistance around the $1,710 level.
ETH price chart. Source: TradingView
Despite this, if Ethereum manages to overcome this resistance level, it could potentially push the price of ETH towards $1,800, indicating a bullish trend.
As investors await the release of the US CPI and retail sales data, they will also be keeping a close eye on Ethereum’s price movement. Currently, the nearest support levels for Ethereum are at $1600 or $1495 at the bottom.
ETH total market cap currently at $201 billion on the daily chart | Chart: TradingView
The results of the release of US CPI and retail sales data are likely to have a significant impact on the overall market sentiment. If the data points to positive trends, it could potentially increase investor confidence and lead to an increase in the price of Ethereum.
Conversely, negative results could drive the price of Ethereum down, potentially pushing it towards nearby support levels.
– Featured Image by HappyCoin
Credit : www.newsbtc.com