Tether’s USDT Exchange Balance Soars as Stripe Announces USDC Payments
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In a notable development for the cryptocurrency market, Tether’s USDT has reached its highest exchange balance in a year, indicating a growing trust in the largest stablecoin by market capitalization. The 7-day moving average of USDT held by exchanges surged to $568 million earlier this month, showing a consistent increase since February, according to a report by The Block.
Factors Affecting Surge in USDT Balance on Exchanges
This increase in USDT balances on exchanges can be attributed to two main factors:
- An influx of users choosing to store their assets on exchanges
- and a prevailing sentiment among traders to sell rather than buy
Many individuals are holding onto their USDT amidst recent market volatility, potentially waiting to assess the market’s direction before re-entering. Bitcoin provided a glimmer of hope yesterday, rebounding to $65,275 after dipping below the $60,000 threshold on April 19. This recovery suggests a potential easing of the market’s recent turbulence.
Stripe x USDC
In related stablecoin news, Stripe has announced plans to support USD Coin (USDC) transactions starting this summer. This marks a renewed commitment to cryptocurrency from the payment processing giant, which had discontinued Bitcoin payments in 2018 due to its volatility.
Crypto is back. @Stripe will start supporting global stablecoin payments this summer. Transactions instantly settle on-chain and automatically convert to fiat. Join the waitlist https://t.co/hws2OsU3Id and watch the demo (h/t @Solana) from Sessions. pic.twitter.com/zGKYW2FM6i
— John Collison (@collision) April 25, 2024
Stripe’s integration of USDC payments into its checkout suite is expected within weeks, highlighting the immediate settlement of crypto transactions in fiat currency. This move reflects Stripe’s strategic shift towards stablecoins, offering the benefits of cryptocurrency without the characteristic price fluctuations.
As the crypto landscape continues to evolve, these developments underscore the industry’s efforts to stabilize and streamline digital asset transactions, making them more accessible and reliable worldwide. The rise in USDT’s exchange balance and Stripe’s adoption of USDC payments are pivotal steps towards achieving this goal, fostering a more robust and user-friendly crypto economy.
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