$2.8b USDT recipients deposit Tether to crypto exchanges
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Cryptocurrency trading firm and market maker Cumberland moved millions of USDT to exchanges after receiving $2.8 billion from Tether’s treasury in three months.
According to Arkham Intelligence, Cumberland has Deposit In the past 24 hours, up to $120 million of Tether’s stablecoin USDT has flowed into cryptocurrency exchanges such as Coinbase, OKX and Kraken. Tether Treasury sent at least $155 million to Cumberland during the same time period.
The reason for the transaction is unknown; however, speculators also raise the possibility. First, given the current market hype, Cumberland may deploy USDT on an exchange to acquire the cryptocurrency for future profits.
According to crypto.news, the cryptocurrency fear and greed index reached its highest point since 2021.
Alternatively, the company may acquire select digital assets for market-making purposes. Companies like Cumberland operate under a business model that provides liquidity to the cryptocurrency market, ensuring order books are filled and investors can buy and sell tokens instantly.
Regardless, cryptocurrency players often send USDT and other stablecoins to exchanges when planning to purchase virtual currencies. It usually indicates bullish sentiment in the market and expectations of rising prices.
Stablecoins serve as a gateway to cryptocurrencies, as these tokens are often pegged to sovereign currencies such as the U.S. dollar. These coins can be exchanged for fiat currency through on- and off-ramps, allowing news users and new capital to enter the digital asset market.
Tether’s stablecoin is the largest of its kind, with a market capitalization of over $94 billion. According to Coingecko, the token’s market capitalization has increased by approximately $28 billion since last year.
