The Whale Watch: Who’s Holding the USDT?
A recent report from the Massachusetts-based research firm Coin Metrics has revealed a staggering statistic: 318 addresses are hoarding at least $1 million worth of Tether (USDT), which constitutes an eye-watering 80% of the global Tether supply. Yes, that’s right; if you thought your savings account was plush, think again!
Comparing the Tether Giants and Bitcoin Whales
To put this in perspective, Bitcoin (BTC) seems to be the popular kid at the party with a more balanced wallet. Only about 20% of total Bitcoin supply is owned by the whales. Surprisingly, over 20,000 Bitcoin addresses hold a minimum of $1 million in equivalent assets. So, it seems our Bitcoin friends are sharing the wealth a bit better…
The Power of Tether: Market Manipulation or Just Business?
According to John Griffin, a finance professor from the University of Texas at Austin, that concentration of Tether can give a handful of big players a significant thumb on the Bitcoin scale. He implies that with many major exchanges like Binance and Bitfinex being part of this elite cadre, there’s an inherent interest in keeping Tether’s thrills and spills alive. Griffin even suggests a darker layer—linking USDT to market manipulation. Yikes!
Concerns About Volatility
Sid Shekhar, co-founder of TokenAnalyst, adds to the chorus by pointing out the risks that come flying in whenever a mega amount of USDT floodgates open. Market volatility can shake the very foundations of crypto, especially with the looming potential of mega trades swinging prices in ways we didn’t know were possible.
Growth of Tether: Riding the Waves
Despite potential risks and the intricacies of market dynamics, Tether (USDT) continues to expand its reach. In fact, it’s so popular that it’s now available on Bitfinex via BlockStream’s Liquid Network sidechain. Gone are the days of just riding Omni! There are plans to make Liquid-based USDT accessible across a variety of exchanges, like OKEx and BTSE. It’s like Tether is on a mission to turn every crypto party into a blockbuster!
