Exchanges are holding more of Tether's USDT. The 7-day moving average of the change in USDT held by exchanges reached $568 million earlier this month, the highest it's been in a year. The moving average has remained positive since the start of February, indicating consistent growth of exchanges’ USDT holdings.

Exchanges’ USDT balances tend to grow either when more people are holding the asset on the exchange or if more traders want to sell the asset than buy it. USDT is the largest stablecoin by market cap.

It is likely that, in this case, many users are holding USDT in their accounts after selling during the turbulent past few weeks in the market. These traders might not have withdrawn their USDT yet, figuring out whether the market slowdown was short term and whether or not they would …