Leading stablecoin issuer Tether minted 1 billion USDT on the Tron network, sparking speculation of a price hike amid soaring demand.
Blockchain tracker Whale Alert recently revealed that Tether Treasury has minted 1 billion USDT on the Tron network. In the latest trade, which took place on Tuesday at 20:43 UTC, a major stablecoin issuer refilled its USDT inventory on Tron.
Tether CEO Paolo Ardoino confirmed the transaction, noting that it was “approved but not issued.” This means that the USDT minted on Tron is not yet in circulation and will be used as inventory for the next issuance request and chain swap.
Tether’s transparency page confirms Ardoino’s disclosure, as 1.059 billion USDT remains in the approved but not issued column of Tron’s USDT details.
Tron Tether issuance reaches $20 billion
The relentless demand for USDT on the Tron network has surged to new levels as the market has witnessed the minting of $20 billion USDT on the blockchain over the past year. Notably, the Tron network holds more than half of all USDT in circulation, establishing itself as a key stakeholder in Tether’s multi-billion dollar stablecoin market.
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According to the data, of the $120 billion of Tether in circulation, $61.7 billion (51.23%) is on the Tron network. Ethereum, on the other hand, holds the second-largest USDT reserves, with $54.5 billion (45.2%) in Tether, located in the leading smart contract network.
In particular, Tether dominates the stablecoin sector, with USDT accounting for over 67% of USD-pegged cryptocurrencies in circulation. The company recently debunked speculation that it was under investigation for allegedly aiding and abetting money laundering due to its strong presence in the market.
What’s next for the market?
Meanwhile, Tuesday’s minting has sparked optimistic speculation among the crypto community, with price increases expected for Bitcoin and altcoins following the redeployment of the new USDT.
The theory remains that Bitcoin’s recent surge to multi-month highs has attracted investors who need stablecoins to acquire crypto assets. One user said, “If you print, you can reach a higher level.”
In particular, the minting and deployment of stablecoins has historically shown a surge in demand in the cryptocurrency market, especially during bull cycles. The increased traction, in turn, drives higher market prices. One example is the $3 billion USDT injection in August that ushered in a violent market recovery when Bitcoin fell below $50,000.
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