Tether releases Q1 USDT profit estimate amid growing FUD
Tether has expressed optimism about its profits in Q1, especially now that March is approaching its conclusion. The demand for USDT surged in during the quarterly period for numerous reasons but the road ahead might have some bumps.
According to the latest reports, Tether expects more than $1 billion in total revenue from USDT in Q1. It also anticipates a $700 million profit for the quarter.
The first three months of March have so far been quite eventful for USDT and the rest of the stablecoin segment following USDC’s depegging.
<p lang=«en» dir=«ltr» xml:lang=«en»>Tether estimates it will make $700 million profit in the March quarter, taking its total excess reserves to over $1 billion. The value of all the USDT in circulation has grown substantially this month from $70.98 billion on March 1 to $78.14 billion on Thursday. CNBC…— Wu Blockchain (@WuBlockchain) March 24, 2023
USDT saw a large influx of volumes especially as many people migrated from USDC. This new volume added to Tether’s transaction revenue generated from USDT transactions.
Tether also increased USDT supply in Q1 and continues to increase it further, according to recent data. There was roughly $77.6.14 billion worth of the stablecoin in circulation on Thursday according to the latest Glassnode data.
Source: Glassnode
But can this surge in circulating supply match the prevailing stablecoin demand? A comparison between active addresses and transfer volumes may provide some interesting insights.
Active addresses peaked in mid-February, during which there was a surge in daily transfer volume. This is likely because of the outflows as the market saw ample demand.
Source: Glassnode
Interestingly, the USDT transfer volume had its highest peak on 11 March. This was mainly
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