In September, Tether set a historic record by issuing 9 billion USDT stablecoins. As a result, the total volume of USDT on cryptocurrency exchanges reached a peak of 48 billion.
This is reported by Finway
Increase in Demand for USDT and Market Dynamics
According to Arkham Intelligence, the market capitalization of USDT has now exceeded $173.5 billion, demonstrating sustained investor interest in this stablecoin even amid market fluctuations. Data indicates that demand for USDT remains consistently high, with investors actively accumulating liquidity in anticipation of new market entry opportunities.
Analysts note that such activity may indicate preparations by major players for large-scale operations.
“Prices are falling, but Tether is printing new USDT. In the past few days to weeks, the number of new issuances has sharply increased,” noted an analyst under the pseudonym Maartunn.
Historical Highs in Reserves and Market Expectations
According to CryptoQuant, in September, USDT reserves (ERC-20) on exchanges increased from 43 billion to a record 48 billion. This indicates that traders are accumulating funds for potential purchases during periods of heightened volatility. The chart below shows the dynamics of USDT reserves (ERC-20) on exchanges:
Additionally, the net inflow of USDT on exchanges reached a new peak since April, confirming the growing interest of investors in the stablecoin.
Historically, an increase in USDT issuance has often preceded significant Bitcoin rallies. A similar trend was observed in early 2023 and late 2024. According to CoinGlass, October is traditionally the strongest month for Bitcoin, with an average gain of 21.9%, while the fourth quarter shows an average return of 85.4%.
Investor BitBull also noted that
“Just this month, they issued 8 billion USDT, and there are still five days left in the month. I think major players are preparing with massive liquidity to buy shares during the dip before a significant rise.”
The key question for the market is when investors will begin to deploy the accumulated liquidity, as we are currently observing a phase of active accumulation.