Cryptocurrency News Today – in the last few months, the USDT stablecoin has turned into an important option in the crypto market. The digital asset’s market cap has risen as it has now surged in adoption. The coin now amounts to the bulk of Ethereum’s network traffic.

As a result of this massive growth, tracking USDT’s movement has given investors novel signs regarding potential market movements. One such signal has appeared. There is data suggesting that the biggest crypto exchange Binance is now holding an enormous sum of the digital asset.

No Less Than $1 Billion Worth of USDT Held by Binance Exchange

According to data that was shared by Jason Choi (Choi is a Wharton School graduate and works as the Head of Research at crypto hedge fund firm The Spartan Group), there is now over $1 billion worth of the Tether stablecoin “sitting on Binance exchange alone.” Note that this figure doesn’t amount the other stablecoins out there on the platform’s roster, including Binance USD, Paxos Dollar, USD Coin, and much more.

From a chart, Choi analyzed this metric citing that the stablecoin is up by 1,000% from it’s $100 million worth on Binance in mid-February. The bulk of this growth reportedly took place after the March 13 crash in the price of digital assets.

Why is the Situation Bullish for Cryptocurrencies?

The exponential growth rate of the USDT stablecoin on Binance exchange signals one thing. It is a sign that there is probably a rapidly growing demand for digital currencies. And when you consider that the growth rate of Binance’s USDT is relatively steady, it would suggest that individual investors are putting their stablecoin on the exchange. The reason for this is that they are likely waiting to do away with their USDT and replace them with virtual currencies, like Bitcoin, and Ethereum. Importantly, it is not just the USDT that has seen massive growth among stablecoins.

Over the past few weeks, there has been a broad resurgence among the bulk of stablecoins out there. Currently, the value of the entire stablecoins has passed the $8 billion mark which is approximately 4.2% of the value of the public digital currency market. Experts believe that the cryptocurrency market will get to a point where top investors will be willing to dump their holdings for Bitcoin and Ethereum, which in turn could trigger a rapid rally that will take stablecoins higher in the digital asset market. Three Arrows Capital CEO Su Zhu agrees with this sentiment as well.