The crisis in Venezuela has driven up the premium for USDT: the bolivar is losing ground.
The Venezuelan bolivar continues to depreciate rapidly, and the population is increasingly turning to stablecoins. Over the past 30 days, the USDT rate on P2P platforms has risen by approximately 16% against the national currency. On the Binance exchange, the price of a single Tether token surged from 690 bolivars to a peak of 810, a clear indicator of panic demand for hard currency.
Money supply spirals out of control
The key catalyst for this growth is an unprecedented increase in the volume of bolivar cash in circulation. According to the country's central bank, by the end of May, the money supply exceeded 2.11 trillion bolivars (about $3.58 billion). In the first quarter, this figure soared by 69%, and since the beginning of the year, it has more than doubled. Such issuance creates a massive imbalance: the supply of fiat money is growing, while access to foreign currency is narrowing.
Venezuela's banking system can no longer cope with the avalanche of demand for dollars. As soon as commercial banks exhaust their limits on currency sales, their automated systems shut down. Businesses and ordinary citizens lose the ability to buy dollars at the official rate, leaving P2P platforms as their only option.
USDT as the new "street rate"
On platforms like Binance, Tether has effectively become the primary retail stablecoin and benchmark for pricing. Analysts note that sellers in Caracas markets—in areas like La Hoyada, El Cementerio, and Catia—are already using the USDT rate when purchasing goods. Some are even setting prices at 1,200 bolivars per dollar, significantly higher than exchange quotes.
"Today we are witnessing a classic situation from the Chávez era: the parallel rate has soared to 810 and shows no signs of stopping, while the money supply stands at 2.11 trillion bolivars. The central bank's intervention failed: many simply could not buy currency and turned to Binance," comments analyst Ever Castro.
The gap between the official rate and P2P quotes is barely narrowing as the central bank continues to print new money. Further regulatory interventions may temporarily curb the rise, but their effect will only be noticeable in the coming weeks. However, the fundamental problem—excess bolivar liquidity—will not go away.
Expert opinion: Venezuela is a classic case demonstrating how hyperinflation and distrust of the fiat system drive the population into the arms of cryptocurrencies. Here, USDT serves not just as a speculative tool but as a vital means of savings. Until the central bank resolves the issuance problem, the premium on stablecoins will only grow.