Despite the recent drop in Tether USDt's market capitalization and trading volume, analysts from Matrixport believe this does not indicate a bearish market.
Drop in Tether USDt Market Cap and Volume
According to CoinGecko, Tether USDt's market capitalization decreased by 2.8% to $137 billion as of January 6, 2025. Daily trading volumes also fell by 64%, from $154 billion to $55 billion.
Optimistic Outlook from Matrixport
Matrixport suggests that the drop in trading volumes is likely due to the holiday season slowdown rather than bearish market sentiment. The analysts note that increasing stablecoin trading volumes typically indicate more favorable market conditions.
Community Reaction to News Speculations
Recent statements from Matrixport about Tether came as the community reacted to rumors regarding regulatory changes for the stablecoin in Europe. The community has slammed these reports as FUD (Fear, Uncertainty, Doubt), arguing they lack substantiation.
Matrixport claims the drop in Tether USDt’s market cap and trading volumes is due to a seasonal pause rather than market change for the worse, expecting market recovery soon.