The CEO of digital asset analytics firm CryptoQuant is showing proof that demand for Tether (USDT) remains strong even as the largest stablecoin by market cap faces mass delisting.

European crypto exchanges are pulling the plug on the dollar-pegged crypto asset to comply with the requirements of the Markets in Crypto Assets (MiCA) regulation that took effect on December 30th.

Under the MiCA regulation, stablecoin issuers operating in the European Union (EU) need to obtain certain licenses to operate in the region, but Tether failed to meet this requirement.

Data from CoinMarketCap shows that USDT’s market capitalization dropped from $140.5 billion to $138 billion over the past week as Tether braces for regulatory hurdles in the EU causing fear, uncertainty, and doubt (FUD) in the market.

The asset also fell short of its 1-to-1 peg with the US dollar, as it trades for $0.998 at time of writing.

But CryptoQuant CEO Ki Young Ju sees no significant impact on Tether. In a post on social media platform X, he shares a chart of USDT’s exchange reserves, which represents the number of USDT held in exchanges. For stablecoins, the increase in value indicates buying pressure.

“Tether FUD: EU exchanges are delisting USDT ahead of MiCA. USDT is losing its power!

Actual impact on exchange USDT reserves:”