USDT Flows Now Shaping Crypto Market Dynamics: Here’s How

Data confirms Tether (USDT) flows have continued to shape the dynamics of the crypto market amid the ongoing bull run.

In recent weeks, the crypto market has been awash with excitement as digital assets, led by Bitcoin, continue to surge to new highs. Behind these rising prices is a surge in demand, reflected in stablecoin flows, particularly USDT.

Crypto analyst “IT Tech” recently highlighted this pattern. In an X post on Wednesday, December 11, the analyst pointed out that USDT activity has risen alongside Bitcoin’s price.

The correlation comes as stablecoin activity often offers insight into market sentiment. For example, increased flows to exchanges can often signal growing market demand, and this has been the case in 2024. Per an IntoTheBlock chart shared by IT Tech, these flows have risen to almost $40 billion this year.

At the same time, the number of active USDT addresses has risen alongside Bitcoin’s price. Specifically, active USDT addresses rose sharply in 2024, from around 100,000 in January to nearly 350,000 in December.

The same trend is observable with USDT’s transaction count. This metric has risen nearly fivefold from just above 5 million to nearly 25 million as Bitcoin’s price increased.

Commenting on the data, IT Tech argued that it highlighted broader market participation and the increasingly important role of stablecoins in liquidity and trading.

Interestingly, USDT’s dominant role is also reflected in its market cap. The frequently quoted figure has nearly doubled in 2024, from $91.7 billion at the start of the year to $139 billion.

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