• Binance announced support for Tether [USDT] on Polkadot [DOT], allowing customers to easily transfer USDT between exchanges.
• USDT’s supply on exchanges declined, as did its supply held by top addresses. DOT’s weekly chart was red, but metrics were bullish.
• USDT’s volume increased, indicating investors were trading the stablecoin; however, whales chose to sell it and accumulate other assets.
Binance Supports Tether [USDT] on Polkadot [DOT]
Binance recently announced that it will extend support for Tether (USDT) on Polkadot (DOT). This development will allow users to easily transfer their USDT between exchanges, encouraging wider adoption of the stablecoin and enhancing its usability within the ecosystem.
USDT Supply Declines
The announcement seemed to have an effect on the supply of USDT – its exchange inflow increased while its supply held by top addresses declined. This suggests that investors are buying more of the stablecoin in this slow-moving market; however, whales are selling it in order to accumulate other assets.
Polkadot Price Action Remains Unaffected
Despite Binance’s announcement, DOT’s price action remained mostly unaffected over the past week – it decreased by more than 2% according to CoinMarketCap. Nonetheless, a look at DOT’s on-chain metrics gave hope for a price uptick in the coming days; these included an increase in demand in the futures market and a recovery in weighted sentiment.
Funding Rate Remains High
One metric that indicated possible bullishness for DOT was its funding rate – which remained high at press time. Typically, when funding rates are high, there is more investor interest which could lead to higher prices down the line if sentiment remains positive.
Overall, Binance’s announcement regarding extended support for Tether (USDT) has had some interesting effects on both coins‘ supplies; while exchange inflow increased and top address holders sold off their USDT holdings, DOT’s price action remained largely unaffected. However, given indicators like high funding rates and recovering sentiment suggest a possible bullish trend for DOT in future weeks or months ahead.