Tether inflows hit $40M per day amid crypto bull market surge

Tether (CRYPTO:USDT) inflows have significantly contributed to the ongoing crypto bull market, which has lasted for more than two months.

Bitcoin’s (CRYPTO:BTC) recent climb to record levels has fueled optimism across the crypto market, leading to a wave of bullish sentiment as 2024 draws to a close.

Meanwhile, Tether’s inflows to cryptocurrency exchanges have surged, playing a vital role in sustaining the upward momentum.

According to data from Santiment, USDT has seen an average net inflow of $40 million per day over the past eight weeks. 

These stablecoin inflows have provided essential liquidity, helping drive major price pumps within the market.

This “fuel” has been key to the recent price gains across various cryptocurrencies, and as the year concludes, USDT’s steady flow of capital hints at further upward momentum in the near future.

The stablecoin market continues to grow globally, with Tether solidifying its position as the leading player.

 In fact, USDT has outpaced Bitcoin as a preferred asset for daily transactions, according to a Chainalysis report.

Fresh competitors like Ripple’s RLUSD are entering the market, but Tether still dominates, controlling 66% of the $212 billion stablecoin market.

 Its supply has grown by $50 billion over the past year, reaching a total of 90 billion.

A recent report by Standard Chartered and Zodia Markets highlights the potential for stablecoins to expand beyond crypto trading. 

These companies predict that stablecoins may grow from 1% to 10% of the US M2 money supply and FX transactions.

The report suggests that stablecoins can offer faster, cheaper transactions and address inefficiencies in traditional finance. 

Regulatory clarity, particularly from potential shifts in US administration, could drive the full adoption of stablecoins in emerging markets like Brazil and Nigeria.

At the time of reporting, the price of Tether (USDT) was $0.9997.