Tether’s USDT on Ethereum Records Largest-Ever $5.03 Billion Single-Day Exchange Outflow, Santiment Reports

Tether’s USDT on Ethereum saw a record $5.03 billion net outflow from cryptocurrency exchanges, marking the largest single-day withdrawal of the stablecoin from trading platforms in the network’s history.

The latest outflow surpassed the previous record of $4.43 billion recorded on June 19, 2022, according to data from crypto analytics firm Santiment.

Santiment analysts said the withdrawals suggest that large holders may be transferring USDT away from centralized exchanges into self-custody wallets, decentralized finance (DeFi) platforms, over-the-counter (OTC) desks, or other destinations, reducing the amount of stablecoin liquidity available for immediate trading.

Alongside the large-scale transfers, Santiment reported that USDT’s network realized profit/loss metric climbed to a five-month high of $2.92 million. The increase was attributed mainly to the unusually high volume of USDT movement rather than a change in the stablecoin’s price, which remains designed to track the U.S. dollar.

The reduction in exchange-held stablecoin reserves could affect short-term market liquidity by limiting the capital readily available to buy digital assets during price declines. However, if the funds are being repositioned rather than removed from the crypto market, the liquidity could return to exchanges as market conditions improve.

Source: Santiment