Publishing research reports on the crypto money market, Kaiko analyzed Tether with the new data it published.
Analysts commented on the largest stablecoin (USDT) issuer's trading volume on centralized exchanges and DEXs – market cap data.
Kaiko experts have determined that Tether's market cap has fallen to the lowest level in the last 4 years. Although this situation is easily explained by the stagnation in the crypto market, the historical peak of the market value at the same time confuses investors.
USDT's trading volume was around $350 billion in the first month of 2023, which has now dropped by almost two-thirds. Its market cap rose from $60 billion in January to an all-time high of $83 billion as of May.
Why Is Market Value Increasing While Trading Volume Is Declining?
Speaking to the crypto press, Kaiko researcher Clara Medalie mentioned that this situation only happens in Tether. BUSD and USDC stablecoins are showing a downward trend along with the trading volume.
Medalie attributed the increase in market value to the increasing regulatory pressure in the USA. The Kaiko expert thinks that investors who use dollars directly in crypto trading or use other stablecoins are now turning to Tether.
