The year has begun to witness the fortunes of the cryptocurrency assets plummet again. Bitcoin had begun to gain momentum after it witnessed a slow start to the year, with Ethereum surpassing another ATH barely 24hours ago.
The latest of this success is that of Tether, the world’s largest USD backed stable coin, which has witnessed immense growth in 2021, only surpassed by crypto giants Bitcoin and Ethereum. However, in a new report gathered yesterday from cryptocurrency report guru, WhaleAlert, a single transaction of about $200 million was witnessed yesterday between two crypto exchanges Bitfinex and Huobi.
Tether is now only behind Ethereum and Bitcoin
The rate of transactions of this nature has been prevalent recently in the cryptocurrency space. Tether’s position as the world’s largest stablecoin now means that the USD backed token is currently being over-relied upon by investors to purchase other digital assets. The single transaction worth $200 million, which occurred yesterday, is one of the largest ever with the stable coin whose fortune and popularity has been on the rise since the beginning of the year.
The cryptocurrency has seen its fortunes move up by at least five times in the last 12 months, as its market capitalization now sits at about $30 billion. The rise in prices of any altcoin has also aided the rising growth of Tether, who, according to analysts, is now the third-largest asset in the world by recent performance.
According to WhaleAlert, the large Tether transaction within both exchanges took place on the Ethereum blockchain network. The reason behind the transaction might not have been entirely ascertained. A few traders believed it was moved solely for trading purposes to buy other assets. A few other assumptions suggest that the Tether assets were moved in a bid to trade it at a better platform.
Bitcoin and Ethereum movement on the high too
The recent data from WhaleAlert suggest that there have also been high volumes of Bitcoin and Ethereum movements in the past few weeks. They reported that this week alone, an anonymous movement of $500 million worth of Bitcoin was witnessed after last week’s anonymous movement of Ethereum worth $200 million was observed.
The firm is unable to decipher the reason fully. Still, they believe that crypto assets’ general price volatility could be a factor, as investors are partially cashing out their investments. Compared to its stellar performance at the tail end of 2020, the dwindling price of Bitcoin has been some worry for the investors of the largest cryptocurrency. However, in a twist of fate, Ethereum itself, which had broken some resistance since the tail end of last year, had led several altcoins like Tether, to massive price rises since the beginning of the year.