$1 BILLION OF USDT IS SITTING ON BINANCE, AND THAT’S BIG FOR CRYPTO

Over the past few months, Tether’s USDT stablecoin has become increasingly important to the crypto market; the asset’s market capitalization has swelled as it has surged in adoption, now amounting for much of Ethereum’s network traffic.

Due to the growth, tracking the movement of USDT has given investors novel signals as to potential market trends. One such signal has seemingly appeared, with data indicating that leading crypto exchange Binance now holds a large sum of the stablecoin.

$1 BILLION WORTH OF USDT IS SIDELINED ON BINANCE

According to data shared by Jason Choi — a Wharton School graduate that is the Head of Research at crypto hedge fund The Spartan Group — there is now just shy of $1 billion worth of Tether “sitting on the sidelines on Binance alone.” This doesn’t count the other stablecoins that platform supports, including Binance USD, USD Coin, Paxos Dollar, and more.

Per the chart, this metric is up 1,000% from the mere ~$100 million worth of USDT on Binance at the $10,500 top in mid-February. A majority of the growth took place after the “Black Thursday” crash in the price of Bitcoin and other crypto-assets.