There was a huge transfer of $200 million Tether between two stablecoins from Bitfinex to Huobi. An account that tracks and analyzes such huge crypto transfers spotted the transactions done on February 5. The same amount of exchange occurred between the treasuries of both coins.
From the beginning of this year, Tether has witnessed a considerable rise in its price, with a market capitalization of about $28 billion, compared to over $6 billion since early January. Hence, the capitalization has soared by almost 520% since the beginning of 2020. BTC and Ether are the first and second biggest crypto assets worldwide.
Another Massive Transaction Exchanged Hands Yesterday
Apart from the recent huge transfer recorded yesterday, the Whale Alert also witnessed two huge BTC transactions and ETHER transactions between unknown entities. Whale Alert reported that an anonymous transaction of about 15,000 BTC, an equivalent of about $600 million, was transferred to an undisclosed wallet.
Besides, a massive crypto transfer of 70,000 worth of Ethereum, which is an equivalent of about $115 million, exchanged hands between unknown entities. Since last year, the number of crypto transfers whose sources appear to be anonymous is getting higher.
This is coming amid a surge in the prices of cryptocurrencies worldwide. People utilize USDT to purchase other crypto assets. The latest surge in the price of some altcoins contributed mainly to the rise in Tether’s price. The latest sudden increase in digital assets’ total market capitalization contributed largely to anonymous transactions, making the market more volatile.
As of February 5, 2021, the crypto industry is now worth $1.15 trillion, a record level. BTC is now moving around $38K following the week’s rally. Since December last year, Bitcoin lost part of its dominance as it fell below 61% of all cryptocurrencies. But Ethereum is now worth $1648 after the week’s rally.
A Similar Transaction Between the Two Stablecoins Occurred Last Year
This was not the first transfer between Bitfinex and Huobi. In December last year, the same crypto alert site tracked about $100 million exchange between the two coins mid-Dec. 2020. The exchange occurred on the Ether blockchain that involved a considerable transfer and some fees. Earlier, an unknown user had already transferred 32350 BTC, an equivalent of $600 million.
Note that Tether is also widely used in the crypto space. Between Dec. 2019 and Dec. 2020, it climbed from 4 to 20 billion USD. But the price settled at $1 in Dec. 2020. The Tether space unity believes that USDT is one of the most stable cryptocurrencies combining the unlimited features of digital assets with USD’s stability to its nature as a store of value, the asset is useful for buying another crypto asset.
Interestingly, the crypto transaction tracker spotted another 120 million USDT transactions between the two coins. The latest transaction shows that there are growing activities in the stablecoins because investors and exchanges have now planned to exchange a massive amount of cryptocurrencies because of the improved volatility in cryptocurrencies.