This Crypto Firm Has Injected $1B USDT Into the Market in the Past Week

The crypto market has witnessed a substantial inflow of capital in the past week, with the majority of the funds coming from trading firm and market maker Cumberland.

A tweet from blockchain analytics firm Lookonchain revealed that Cumberland has injected more than $1 billion Tether (USDT) into the crypto market since August 6.

Crypto Sees High Flows From Cumberland

Cumberland receives USDT from the treasury of the stablecoin issuer Tether and transfers the cryptocurrencies to major exchanges, including Binance, Coinbase, Kraken, and OKX. The market maker received over $141 million USDT from the treasury earlier today and distributed the assets to the exchanges.

USDT flows from Cumberland to exchanges also indicate that institutions are injecting funds into the market to buy crypto assets. Lookonchain noted on Monday that institutions appeared to have temporarily stopped buying bitcoin (BTC) because trading firms like Cumberland stopped receiving USDT from Tether Treasury and transferring them to exchanges. As a result, bitcoin’s price dropped 4.5% to $58,500 before recovering to $60,200 at the time of writing.

Between August 5, when financial markets crashed, and August 9, when BTC recovered to $62,000, Tether Treasury transferred $1.3 billion USDT to crypto exchanges via market makers like Cumberland. On August 7 and 9, Cumberland accounted for more than $300 million in USDT transfers to exchanges.

Data from Lookonchain shows Cumberland has injected around $7.3 billion into the crypto market since October 20, 2023.

Tether Mints More USDT

As demand from crypto investors ramps up, Tether mints more USDT. The stablecoin issuer has minted 32 billion USDT in the past year, with the latest 1 billion mint recorded on Ethereum today. One month ago, the firm minted 1 billion USDT on the Tron network.

The rising USDT mints on crypto networks indicate increasing market liquidity, which drives markets upward, according to historical data; hence, this could be considered a bullish factor and signal of an impending market rally in the coming months.

Meanwhile, Tether’s Q2 earnings report revealed that the company saw its highest quarterly net inflow ever: a net operating profit of $1.3 billion and an all-time high in U.S. Treasury bill ownership.