Is Circle (USDC) the Reason for Tether's Rise? Analyst Commented!

Tether (USDT), the world's largest stablecoin, continues to increase its market value.

According to the news of Coindesk, Tether has increased its market value to $ 80 million, while Tether is very close to the record level of 83 million reached last May.

While the value of Tether has increased by 12% in the last four weeks, it is stated that this increase is behind the issuances on the Tron (TRX) network.

Evaluating Tether's rise, Markus Thielen, head of Matrixport's research division, said that Tether's market value has risen due to "aggressive issuance" in the Tron network, which has more presence in China.

Markus Thielen pointed out that Tether on the Tron network accounts for more than half of the current market value.

Stating that while Tether's market capitalization increased, the market value of USDC, the second largest stablecoin, fell 27% to $ 32.5 billion, Thielen said that he exited USDC after investors announced that Circle had money in Silicon Valley Bank.

Noting that USDC investors probably changed their USDC to Tether and Bitcoin (BTC), Thielen said:

“Bitcoin price rose from $20,000 to $28,000 in a matter of days after regulators declared support for banks to resolve the banking crisis.

However, USDC holders either converted their USDC to USDT or bought Bitcoin."

*Not investment advice.