According to experts, it is possible for Tether to pump the Bitcoin and altcoin market while continuing to print billions of USDT. Meanwhile, Lido Finance is accelerating its 285% rally after the rejection of its $29 million token sale.
Tether could pump the crypto market
As reported by WhaleAlert, the issuer of Tether, one of the most in-demand stablecoins, has minted an additional one billion USDT. Tether resumed issuance after a three-month hiatus. In this context, it started actively increasing its stablecoin supply on July 29.
https://twitter.com/whale_alert/status/1554804950315958272
Many analysts and crypto enthusiasts say the increasing stablecoin supply is more of a bullish signal for the crypto market. For example, Binance chairman Changpeng Zhao (CZ) is one of them. CZ says the growing stablecoin supply is bullish for cryptocurrencies in the long run. Because the same coin is waiting ‘on the fence’ and the potential for a future rally is dust.
Blockware analyst and well-known crypto expert Will Clemente takes this from a slightly different perspective. According to him, the fewer stablecoins on the market, the better. Because the combination of oversupply and lack of buyers is possible to cause the crypto market to crash. At the same time, according to Clemente’s model, when the amount of stablecoins in circulation begins to decline, it signals the growth of crypto assets. However, it is worth noting that in the expert’s analysis, he agreed with CZ on the existence of a large number of stablecoins.
Altcoin price pumps after token sale rejection
Lido Finance has gained more than 280% in the last few weeks. With this move, altcoin became one of the best performing assets in the cryptocurrency market. LDO has seen a price increase of more than 30% in the last few days. Therefore, according to experts, the rally does not seem to stop in the near future.
Lido will be one of the biggest beneficiaries of the new update. That’s why the rally started after the Ethereum Merge history was released. The platform has a large number of stETH tokens, which are liquid alternatives to staked Ethereum. cryptocoin.com As you follow, Ethereum’s PoS update will be in September. After this update, more users want to join Lido DAO and benefit from Ethereum 2.0.
With the merge pump fading, LDO began to slowly but steadily reverse, fueled by potential Lido DAO portfolio diversification with the help of DragonFly capital. Fortunately for some users, the community did not accept the proposal in decentralized voting.
Investors eased the selling pressure as the DAO did not sell their tokens. Experts say this supports the continuation of the rally. At that moment, LDO broke the $1.5 resistance level. The latest release of weekly numbers by Lido Finance has been a strong push for the token, which is showing some fading signs in the market. The price of the LDO token rose 7.9% in a week as the TVL of the project reached $7.49 billion and the DeFi industry showed some signs of recovery.
