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Binance Now Sits With $1 Billion In USDT

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Binance coin

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There is no argument that the USDT stablecoin, coming from Tether, has become one of the most used forms of crypto in the modern age. The market capitalization for the stablecoin has only increased immensely, with adoption spreading across the globe. As it stands now, the USD-pegged stablecoin accounts for a large proportion of Ethereum’s overall network traffic.

Sidelining Massive Amounts Of USDT

Due to the massive growth of USDT, it’s possible to track the overall movement of the stablecoin and be given novel signals to potential trends in the market. One of those signals has seemingly appeared, coming by way of Binance. It seems that one of the heavyweight global cryptocurrency exchanges is now holding a considerable sum of USDT.

Jason Choi, a graduate at Wharton School serving as the Head Of Research within the Spartan Group crypto hedge fund, provided the data for this news.

According to Choi, just under $1 billion in Tether has been sidelined on the Binance Exchange. This doesn’t include the other forms of stablecoin available on Binance. However, The amount of USD Coin, Paxos Dollar, Binance USD, or any of the different types of stablecoin aren’t factored in here.

Detecting Possible Growth Signals

According to the provided chart, Binance has increased its USDT presence by 1000% since mid-February. Initially, the exchange held about $100 million worth of USDT, doing so at the $10,500 top. A large swathe of this USDT gathering occurred on “Black Thursday,” or the day the entire crypto industry managed to halve in value amid the COVID-19 pandemic scare.

While there are many reasons to hoard an insurmountable amount of money, there is a reason that holds good tidings for the crypto industry. In short, a large amount of sidelined stablecoins means that Binance could see the latent demand for crypto to be that large.

Good Omens All Round

Another essential factor to consider is the fact that the USDT reserves at Binance didn’t experience a massive spike in volume, but rather a steady growth. What this suggests is that no whale investor was dumping all his crypto here. Instead, it’s an overall shift of many individual investors within Binance, all sending their USDT to the Binance exchange.

A possible reason for this move is planning to lowball all the significant forms of crypto: Bitcoin, Ethereum, and the like. The idea here is to buy low and sell high, or at least higher than what they purchased it for.

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