Tether Treasury, a significant player in the stablecoin market, has recently minted an additional 1 billion USDT tokens on the Tron network. This move is part of a broader trend of expansion within the cryptocurrency sector. Lookonchain, a blockchain analytics service, provided the data confirming this latest issuance.
Tether Treasury minted 1B $USDT on #Tron again 1 hour ago.
Since Nov 3, #TetherTreasury has minted a total of 6B $USDT on #Tron and #Ethereum.https://t.co/8NzHewH6Rlhttps://t.co/2wFo2DEvz3https://t.co/0nVZjbuVjB pic.twitter.com/7CUt7TOAxJ
— Lookonchain (@lookonchain) December 11, 2023
The minting of these tokens is not an isolated event. Since November 3, Tether has been on a massive expansion streak, minting a total of 6 billion USDT tokens across both the Tron and Ethereum networks.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 1,000,000,000 #USDT (1,008,235,000 USD) minted at Tether Treasuryhttps://t.co/EMkzybOauN
— Whale Alert (@whale_alert) June 12, 2023
Tether’s role in the cryptocurrency world is multifaceted. Primarily, it aims to offer a stable, digital representation of fiat currencies within the blockchain environment. USDT, being less volatile than many cryptocurrencies, often serves as a safe haven during market turbulence. The minting of additional tokens is largely in response to escalating demand within the cryptocurrency market and to maintain the stability of its peg to fiat currencies like the US Dollar.
Tether’s influence: 65 percent market dominance
According to recent data from Glassnode, an analytics firm, reveals a resurgence in the stablecoin market. After 18 months of contraction, this sector has seen notable growth. Tether’s USDT, in particular, has reached an all-time high market cap of $89 billion. The total market capitalization of major stablecoins has also surged, now standing at $124 billion. This growth trend, reversing a downtrend that began in May 2022, is interpreted by analysts as a bullish signal for the cryptocurrency market and an indicator of improved liquidity. Tether has been a key driver in this expansion.
PSA: 1B USDt inventory replenish on Ethereum Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.https://t.co/Y1bqxZglgR
— Paolo Ardoino 🍐 (@paoloardoino) June 12, 2023
Tether’s recent mint of 1 billion USDT on the Tron network, equivalent to approximately $1,000,485,000, marks a significant milestone just two months following its previous billion-dollar mint. This issuance is part of Tether’s inventory replenish process on Ethereum, as explained by Paolo Ardoino, Tether’s CTO. He emphasized that this action will not alter the overall market capitalization of USDT and that the newly minted tokens will serve as inventory for future issuance requests and chain swaps. With this development, Tether’s USDT now boasts a market dominance of 65% of the total market value of stablecoins, significantly ahead of its major competitor USDC, which holds 21.4%.
The choice of the Tron network for this significant minting activity underlines Tron’s growing prominence in the digital currency space. Tron, known for its high-speed and low-cost transactions, is increasingly being recognized as a viable platform for stablecoin operations.
Tether’s aggressive expansion and the overall growth in the stablecoin market are likely to have far-reaching implications. They could signal a shift in investor sentiment, a growing acceptance of digital currencies, and a recognition of the need for more stable, digital representations of value in the blockchain world.