In the previous article, we talked about the basic concepts of circulation and issuance on the USDT chain, but just explaining these concepts is not enough to understand the impact of USDT on the market.
Therefore, Tokenview has made a comprehensive monitoring and indicator design for the data on the USDT chain. This article will introduce to investors how the indicators of the USDT series affect the price from the perspective of USDT minting and new issuance.
USDT minting data
Let’s draw a conclusion first: USDT’s coinage (money printing) in Ethereum has surpassed that of Omni
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How does minting affect prices?
Lets first review the USDT minting-issuing process. USDT will not be circulated immediately after minting, but will first enter the Treasury address for issuance, and then transfer from the Treasury to various exchanges or other destinations. Therefore, the coinage will not have any impact on the BTC price at that time, and the impact may occur within a period of time after the coinage.
According to such expectations, this article observes the BTC price corresponding to 10 coin mintings. In most cases, the price of BTC has a visible increase for a period of time after the minting.
For example, April 15th (4-hour line, Binance Exchange)
May 24 and May 29 (4-hour line, Binance Exchange)
June 11 and June 16 (4-hour line, Binance Exchange)
The common feature of these days is a period of time after minting, when the price starts to rise in the medium and long term. The rising period of prices in April and June was relatively stable, and the overall price volatility was more obvious in May, but the trend was still rising.
Looking at the entire coinage data in the first half of the year, the number and amount of coinage in April are the largest, with a total of 6 transactions, totaling 640 million USDT. From May to June, 4 coins were minted, totaling 500 million USDT.
Starting from the first coinage on April 8th and the current time as the end point, taking May 24th as the dividing line between the two cycles, the first cycle of coinage totaled 640 million USDT, and the price increased by 53.32% (from 5121.16 rose to 7851.51). In the second cycle, 500 million USDT was minted, and the price increased by 40.84% (from 7851.51 to 11058.32).
Roughly estimated based on the price increase in the first cycle, the price increase in the second cycle is predicted to be 41.65%, and the corresponding price is 11121.8522; the predicted price has been touched in the early morning of June 24th, Beijing time, with a maximum of 11392.64; follow-up if USDT does not continue to print money, and the unissued amount of USDT is low, the price of BTC in the future may replicate the adjustment trend in May.
USDT new issuance data
Since the beginning of this year, the number of newly issued USDT has shown a clear upward trend. The figure below shows that the sharp increase began in April.
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What impact will the increase in the number of USDT issuance have?
We compared the price of BTC every day.
The most rapid increase in the number of new issuances of USDT was in April, and it has continued until now. The price of BTC increased by 29.93% during the period of 4.1-5.1, which was not the highest compared to the following months.
BTC increased by 58.51% in May, and June has not yet ended, but as of the 24th, BTC has increased by 30.98% that month.
Before the beginning of this year and April, neither the price of BTC nor the new issuance of USDT had such a significant increase.
Summarize
Summarize
USDT’s banknote printing and new issuance have some visible correlations with mainstream currencies such as BTC. Due to space limitations, this article only uses BTC as an example to illustrate this phenomenon. USDT is still the most popular currency among stablecoins with the highest market share, and it is also one of the entry-level currencies of mainstream and non-mainstream currencies. The increase in USDT printing and issuance can reflect the new entry funds The growth trend can also reflect the rising trend of market popularity, so it is particularly important to pay attention to USDT-related indicators for a long time.
As a data mining and analysis company, Tokenview will release the data monitoring and indicators of the whole process of USDT banknote printing-issuance, and carry the above content in the form of a weekly report. Investors are requested to pay close attention.
If you have other interesting indicators and data that you want to monitor, please contact us!
