Glassnode analytics provider has shared new data to do with USDT on-chain fundamentals. According to the metrics data, users have been withdrawing their Tether stablecoins from exchanges less often and also much less activity has been detected around USDT wallets.
Investors prefer not to withdraw their USDT
As per a chart published by Glassnode, the amount of USDT withdrawals from crypto exchanges (1-day MA) has dropped and hit a five-month low. This value currently totals 1,160.833.
Last time this metric was measured on May 4, back then it amounted to 1,164.208.
? $USDT Number of Exchange Withdrawals (1d MA) just reached a 5-month low of 1,160.833— glassnode alerts (@glassnodealerts) October 3, 2020
Previous 5-month low of 1,164.208 was observed on 04 May 2020
View metric:https://t.co/0rszf7n97q pic.twitter.com/gGI3iM096d
Despite certain legal issues Tether has been involved in recently, USDT remains the most popular USD-backed stablecoin.
It is included in the majority of trading pairs on most crypto exchanges (especially top-tier ones) and, as other stablecoins, it serves as a safe-haven when cryptocurrencies begin to drop.
Besides, on some platforms USDT staking programs are running which incentivizes users keep their USDT there and avoid withdrawing.
Here’s how Glassnode comments on this metric:
“The total count of transfers from exchange addresses, i.e. the number of on-chain withdrawals from exchanges. These metrics are mutable – the data is stable, but especially most recent data points are subject to slight fluctuations as time progresses.”
Number of active USDT addresses is down 12.6 percent
Another piece of data shared by Glassnode says that over the past twenty-four hours, the amount of active USDT addresses (2-day MA) has seen a substantial drop.
After the 12.6 percent decline, it now constitutes 6,482.167.
For several months already, Tether has been the holder of the top-3 spot, according to the CoinMarketCap scale. Another recent milestone is that Tether's market cap has surpassed $15 billion and it remains above that level.