Seems like Tether’s questionable activity throws a massive wrench in this analysis. You can’t equate minting to flows if the biggest minter is (allegedly) just printing the things whenever they feel like it
https://www.forbes.com/sites/sergeiklebnikov/2021/10/27/robi...
It's like saying the internet is dying off because AOL's dialup customer base is shrinking.
(This is a general problem in some areas of finance - is there new money entering the subsystem, or is it the same money going round and round? Crypto is so opaque that you can't tell. NFTs are worse. Coins at least have liquid markets and market prices. NFTs have high asking prices in stalled markets, and wash sales that conceal whether there's any significant resale market at all.)
[1] https://www.coindesk.com/markets/2021/01/11/tether-mints-rec...
But it really tokens that are pegged to a fiat currency. You can't redeem tethers because there is no back account holding a dollar for every tether.
sigh This is a common misconception, so fact check time...
Tether is printed on demand, but it is backed by assets.
An independent audit was done to settle a claim brought by the New York Attorney General. The audit found $35.2 billion in assets against $35.1 billion in issuance liabilities.
The case was settled with an $18 million fine and a promise of increased transparency, but ultimately the NYAG was unable to demonstrate any evidence supporting claims that Tether was unbacked.
https://blockworks.co/celsius-reportedly-borrowed-1b-from-te...