- A large amount of USDT flowed from Tether to the Ethereum exchange.
- Even as the price of ETH fell, activity on the network remained stable.
Ethereum [ETH] The past few days have seen significant price fluctuations.However, the tether [USDT] Recent actions may help improve sentiment regarding ETH.
USDT joins
According to Lookonchain data, in the past 18 hours, a significant amount of USDT, specifically the equivalent of $318 million, moved from Tether's treasury wallet to exchanges on the Ethereum network.
As a result of this outflow, Tether's Ethereum holdings decreased significantly. At the time of writing, he only had 124 million USDT in their treasury.
To meet potential demand, Tether is expected to mint an additional 1 billion USDT in Ethereum soon.
Source:X
Tether has a history of minting large amounts of USDT, often in response to periods of increased cryptocurrency activity. This does not necessarily guarantee a spike in Ethereum usage.
Ethereum is the primary platform for USDT, but other blockchains such as Tron could also be used for the same purpose.
At the time of writing, gas usage on the Ethereum network had not changed in recent days. However, NFT transactions taking place on the network have significantly decreased.
This suggests that other types of activity are stagnant. DeFi trading, stablecoin swaps, or general token activity may be contributing to stable gas usage.
On the NFT side, market corrections or declining public interest may be at play.
Source: Santiment
How's the holder doing?
While Ethereum activity was consistent, ETH price movements were not showing any green signs. At the time of writing, ETH is trading at $3,000.70, with its price down 2.74% in the past 24 hours.
If the price continues to fall further, it could permanently break above the $3,000 level, which could cause further panic in the market.
read ethereum [ETH] Price prediction for 2024-2025
Due to the significant drop in ETH price over the past few days, ETH's MVRV ratio has dropped significantly. This indicates that most holders are not making profits at the time of writing.
However, ETH trading volume also increased by 11.79% during this period.
Source: Santiment
