Despite Heightened FUD, Tether Publishes Its Q1 USDT Profit Estimate

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Last Updated on March 25, 2023 by Bitfinsider

Tether is confident about its Q1 earnings, particularly now that March is coming to an end. Numerous factors contributed to the increase in demand for USDT during the quarter, but there may be some hiccups in the future.

Tether anticipates receiving more than $1 billion in total USDT revenue in Q1 according to the most recent estimates. Additionally, a $700 million profit is projected for the period.

Following the depegging of USDC, the first three months of March have been quite exciting for USDT and the rest of the stablecoin market.

Particularly as many individuals moved from USDC, USDT experienced a significant increase in volumes. Tether’s transaction revenue from USDT transactions increased due to this new number.

According to recent statistics, Tether also increased USDT supply in Q1 and has continued to do so. According to the most recent Glassnode statistics, there were approximately $77.6.14 billion worth of stablecoins in circulation on Thursday.

Can the current stablecoin demand be met by this increase in circulating quantity, though? Some intriguing conclusions might result from comparing transfer volumes and current addresses.

Mid-February saw a peak in the number of active addresses and a rise in the daily transfer rate. The market saw plenty of demand, so the withdrawals are probably to blame.

It’s interesting to note that on March 11th, the USDT transfer number peaked. This was primarily due to the aforementioned outflows brought on by the migration of the USDC.

However, as demand for cryptocurrencies increased, outflows caused the transfer amount to decline over time.

American authority makes progress in criticizing stablecoins

Although the rising USDT traffic may be preparing for increased demand, there have been some issues. Numerous supporters of cryptocurrencies have voiced doubts about Tether’s capacity to offer an adequate assurance of reserves. Recently, the SEC used these worries as justification to attack Tether and USDT.

In reality, the SEC recently told investors that a proof of reserves was meaningless. The latter is the most recent worry on the market.

The opposition of regulators to cryptocurrencies and stablecoins has been growing. Some people, however, see this as a positive indication that regulators are worried about the cryptocurrency market possibly posing a danger to the conventional financial system.

Despite the market’s present perceptions, there are still worries about possible bank runs that could result in the loss of stablecoin pegs in the future.


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