As of June, the daily trading volume of Tether (USDT) remains above $ 3 billion, which is 76% more than the daily volume of Ethereum. How does Tether reflect the changes?
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Just a few months ago Ethereum ranked second in terms of trading volume, with a value of about $ 3 billion, and bitcoin was more than $ 5 billion. In the course of the third reduction in the correction in the history of the crypto-currency Market, the daily trading volume of bitcoin fell to $ 3.4 billion, and the volume of Ethereum fell to $ 1.7 billion.
On such crypto-currency exchanges as Binance, the second largest for trading Crypto Currency, which do not support currency pairs with a currency, traders mainly use USDT to hedge the value of the main crypto currency.
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The daily trading volume of USDT can be seen as a direct representation of the volatility in the crypto currency market:
- if the Tether volume is abnormally high in a downtrend – this means that traders sell crypto currency, withdrawing assets in USDT;
- if the volume of Tether is unusually large in the bull market – the situation demonstrates that traders sell their USDT reserves to purchase more crypto currency.
As of the end of June, given the daily trading volume of Tether of $ 3 billion, and considering that USDT is the second best-selling crypto currency in the world market, we can say that holders of crypto-currencies buy more USDT, expecting further decline in the market.
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Willy Wu, a well-known crypto-currency researcher and investor, said in late May that bitcoin would most likely experience a decline to 5’500 dollars due to a lack of volume in the market and overly strong bears:
Over the past few weeks, Tether’s growth and activity have led investors to express concerns about the state of the market and the reliability of USDT.
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This week, the Washington-based law firm (FSS), consisting of three former federal judges and a former FBI director, disclosed the results of the USDT audit and concluded that the billions of dollars stored in Tether’s bank accounts were verified. FSS writes:
As reported, the amount, with the audit FSS, was 2’538’090’823.52 US dollars.
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