Key Points
- A massive $318 million worth of USDT has moved from Tether to Ethereum exchanges.
- Despite consistent activity on Ethereum, the price of ETH has seen a significant decline.
USDT Flow from Tether to Ethereum
Ethereum [ETH] has experienced significant price fluctuations recently. Yet, the latest actions of Tether [USDT] may influence the sentiment around ETH.
Lookonchain’s data reveals that in the past 18 hours, a substantial amount of USDT, specifically $318 million, has been transferred from Tether’s treasury wallet to Ethereum-based exchanges.
Impact on Tether’s Holdings and Ethereum’s Performance
This outflow has considerably diminished Tether’s holdings on Ethereum. At the time of reporting, their treasury held a mere 124 million USDT.
Tether is anticipated to mint another 1 billion USDT on Ethereum soon to meet potential demand. Tether’s history shows a pattern of minting large amounts of USDT, often in line with periods of heightened cryptocurrency activity. However, this doesn’t necessarily assure an increase in Ethereum usage.
While Ethereum is the primary platform for USDT, other blockchains such as Tron could also serve similar purposes.
At the time of reporting, the gas usage on the Ethereum network had remained consistent over the past few days. However, there’s been a significant drop in NFT trades on the network. This indicates that other types of activities, such as DeFi transactions, stablecoin swaps, or general token activity, are compensating for the stable gas usage.
A market correction or waning public interest may be influencing the NFT side.
Despite the steady activity on Ethereum, ETH’s price movement hasn’t shown positive signs. At the time of reporting, ETH was trading at $3,000.70, with its price having fallen by 2.74% in the last 24 hours.
If the price continues to fall, it might permanently drop below the $3,000 mark, potentially causing market panic.
The considerable drop in ETH’s price in recent days has led to a significant decrease in the MVRV ratio for ETH, indicating that most holders were not profitable at the time of writing. However, the volume at which ETH was trading had also increased by 11.79% during this period.
