The CEO of the digital asset analysis firm CryptoQuant has presented evidence showing that demand for USDT remains robust. This situation arises even as Tether, the largest stablecoin by market capitalization, faces widespread delisting.
European Regulations and Delisting
Cryptocurrency exchanges in Europe have begun delisting dollar-pegged stablecoins due to the Crypto Asset Markets (MiCA) regulation that came into effect on December 30. This regulation requires stablecoin issuers to obtain specific licenses to operate within the European Union.
According to MiCA, stablecoin issuers operating within the EU must secure the necessary licenses. However, Tether has been unable to meet these requirements. Data from CoinMarketCap shows that USDT’s market capitalization decreased from $140.5 billion to $138 billion last week.
Although USDT’s peg to the US dollar sometimes fluctuates, CryptoQuant’s CEO Ki Young Ju states that there is no significant pressure on Tether. He shared a graph on the social media platform X, indicating that USDT reserves on exchanges are increasing.
“Tether FUD: EU exchanges are delisting USDT prior to MiCA. USDT is losing strength! But the situation is different from the headlines.” – Ki Young Ju
Previously, USDT took various measures to maintain its peg to the US dollar. However, regulatory pressures in Europe have not disturbed USDT’s position in the global market. The fact that USDT is trading at around $0.998 indicates a slight deviation from its 1:1 peg, which is not enough to cause uncertainty and distrust in the markets.
The CEO of CryptoQuant highlights that the increase in USDT reserves on exchanges indicates buying pressure for the stablecoin. This signifies that demand for USDT is sustained.
The growth in reserves demonstrates USDT’s resilience in the market and users’ trust in the stablecoin. It shows that Tether’s delisting process has not adversely affected USDT’s reserves.
It appears that Tether’s European delisting has not negatively impacted USDT’s global demand and reserves. CryptoQuant’s CEO Ki Young Ju’s data suggests that USDT remains sturdy. These developments could strengthen Tether’s position in the stablecoin market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
