Tether Adds USDT Support to the Bitcoin Ecosystem and Lightning Network
Tether continues to strengthen its position in the cryptocurrency ecosystem by adding support for the USDT stablecoin at both the base level of the Bitcoin network and within the Lightning Network. This integration became possible thanks to Taproot Assets from Lightning Labs, which allowed the creation of a scalable and efficient solution for micropayments, remittances, and cross-border settlements.
As a result of this update, users will be able to perform faster and cheaper transactions with USDT, as well as reduce the load on the Bitcoin network by using the capabilities of the Lightning Network. Tether’s initiative is aimed at providing seamless payment solutions that will be in demand not only for everyday transactions but also in business environments where speed and low fees are required.
As of October 2024, USDT was used in 330 million cryptocurrency wallets and on-chain accounts. Of these, 109 million are USDT holders, more than double the number of Bitcoin holders. For Tether, this is another step in expanding its influence in the cryptocurrency world, with new partnerships, including support for Aptos and TON.
Lagarde Against Bitcoin in the European Central Bank’s Reserves
The President of the European Central Bank (ECB), Christine Lagarde, once again expressed doubts about adding Bitcoin to the strategic reserves of European Union states. In recent comments, Lagarde emphasized that state reserves should be liquid, reliable, and secure, and that cryptocurrencies may pose significant regulatory risks, making Bitcoin unsuitable for storing in such reserves.
Her statement came after Czech National Bank Governor Aleš Michl proposed considering investing up to 5% of reserves in cryptocurrencies. Lagarde pointed out that such assets could be used for money laundering and financing criminal activities, and in the face of growing interest in cryptocurrencies, she does not see them as fitting for state reserves.
Jerome Powell on Cryptocurrencies: Banks Must Manage Risks
Federal Reserve Chairman Jerome Powell commented on the cryptocurrency market during a press conference, noting that banks are ready to serve cryptocurrency clients if they adhere to established risk and regulatory standards. He stated that the Fed is not against innovations in the financial sector, including cryptocurrencies, but emphasized that there are additional requirements for banks working with crypto assets to manage risks.
Powell also pointed out that financial institutions must ensure transparency and control when working with cryptocurrency clients to avoid fraud and illegal operations. This statement reflects the growing interest in crypto assets and the need for regulation that could facilitate their integration into the official financial system.
Ethereum Balance on Exchanges Continues to Decline Since 2022
The Ethereum market continues to show stable confidence despite long-term trends. According to data from CryptoQuant, the balance of Ether on exchanges has significantly decreased since 2022. Investors are transferring their coins from exchanges to cold wallets and Ethereum 2.0 deposit contracts, indicating long-term investment sentiment toward the asset.
The decreasing balance of Ether on exchanges is a clear indication that investors are not looking to speculate on short-term price fluctuations. Unlike previous bullish trends, when Ethereum was actively sold at price peaks to lock in profits, there is now a trend toward accumulation.
However, on social media platforms like Telegram and Reddit, negative sentiment towards Ethereum continues to prevail, which may be related to the volatility and regulatory risks inherent in the cryptocurrency market. This trend highlights the uncertainty in the moods of the crypto community but also shows that long-term investors are confident in Ethereum’s future.
Each of these events is significant in shaping the future of the cryptocurrency market, and we will continue to monitor developments in this dynamic field.
