Crypto News

Stablecoin Market Experiences Remarkable Growth With Tether’s Aggressive Bitcoin Purchases

The aggregate stablecoin supply has witnessed significant expansion since October 2023, experiencing a notable monthly increase of $4.17 billion in December—an unprecedented surge not seen since March 2022.

This surge has propelled the current market capitalization of all stablecoins to an impressive $128 billion.

Tether, a prominent cryptocurrency stablecoin issued by Tether Limited Inc., has emerged as a major player in the crypto space, actively acquiring Bitcoin in substantial amounts. 

On-chain data analysis reveals that Tether engaged in a discreet acquisition of over $360 million worth of Bitcoin at the beginning of this year. This strategic move elevated Tether’s total Bitcoin holdings to 66,400 BTC, equivalent to a valuation of $2.7 billion.

Significant Tether Increase In Accumulation

A notable event in this acquisition spree was observed in the balance of a blockchain address associated with Tether. On January 4, the balance witnessed the most substantial one-day increase since March 2023, surging from 57,500 BTC to 66,400 BTC. 

Tether had previously disclosed its intention to allocate 15% of its operating revenues to Bitcoin investments, aligning with its public revelation in May that 2% of its reserves were invested in the cryptocurrency.

As a result of these strategic moves, Tether now ranks as the 11th largest holder of Bitcoin globally, further solidifying its position in the cryptocurrency landscape.

The remarkable growth in stablecoin market capitalization, coupled with Tether’s assertive Bitcoin acquisitions, underscores the dynamic evolution and increasing prominence of stablecoins in the broader crypto ecosystem.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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