- Recent data indicates a sharp rise in Tether’s on-chain activities, with daily transfers exceeding 143,000.
- The growth metric for the USDT Network has also shown an increase, signifying heightened blockchain engagement.
- Tracy Jin, COO of MEXC, stated that removing OCC restrictions for banks dealing with stablecoins in the US reduces obstacles for new market entrants.
Tether (USDT) stablecoin has experienced a significant surge in on-chain activity, with daily transfers reaching over 143,000, marking a six-month peak. Additionally, the USDT Network growth metric has risen, reflecting increased blockchain participation. In an exclusive conversation, Tracy Jin, COO of MEXC, mentioned that the removal of OCC restrictions for banks handling stablecoins in the US is lowering the hurdles for new players in the market.
On-chain activity suggests a potential market recovery
Recent data highlights a rapid increase in Tether’s on-chain activity, with daily active addresses hitting 143,480 on Tuesday, a six-month high. Furthermore, its Network growth metric also shows an upward trend, indicating heightened use of blockchain technology.
Historically, traders tend to prepare for buying when activity in USDT and other stablecoins surges during price declines, as illustrated in mid-September 2024. During that time, USDT’s on-chain activity climbed, subsequently followed by a price increase. Similarly, the current spike in activity may create buying pressure, contributing to a rebound in crypto prices.
USDT on-chain activity chart.
In an exclusive interview, Tracy Jin, COO of MEXC crypto exchange, remarked, “The removal of OCC restrictions for banks dealing with stablecoins in the US is reducing barriers for new market participants.
She added that the US Treasury’s recent comments regarding the gradual incorporation of stablecoins into the financial system could boost demand for the US dollar and enhance stability for both institutional and retail investors. Moreover, the formal recognition of USDT on regulated exchanges in Thailand could broaden access to capital in a country where 40% of cryptocurrency transactions already involve this stablecoin, potentially fueling additional growth across Asia, especially with the recent approval of USDC in Japan.
“The market may experience capital moving out of riskier assets, such as Bitcoin and altcoins, which aligns with the ongoing bearish trend. Considering the recent $3.5 billion outflow from Bitcoin ETFs, the growth in stablecoin capitalization suggests that institutional investors are currently adopting a cautious approach. However, unless positive macroeconomic or regulatory developments occur in the near future, further declines in the crypto market are possible, and the rise in stablecoins might signal capital exiting from the digital ecosystem,” Jin explained.