Tether mints one additional billion USDT on Ethereum as its stablecoin dominance increases
Another one billion dollar-pegged tokens were issued by Tether on the Ethereum blockchain.
The stablecoin issuer Tether created one billion USDT tokens on the Ethereum network late last night. According to Paolo Ardoino, CTO of Tether, the minting constituted an “inventory replenish.” He added that it was a “transaction that was authorised but not issued,” indicating that the quantity will be used as inventory for the next period of issuance requests and chain exchanges.
USDT is the most prominent stablecoin in the crypto industry, with a 1:1 peg to the US currency. It is typically used to facilitate transactions on large exchanges that do not take fiat currencies.
On Ethereum, the total quantity of USDT exceeds 35 billion tokens. Its closest competitor, the USDC issued by Circle, has fewer than 30 billion tokens. In contrast, Binance USD, which is not minting new tokens at the moment, comprises fewer than seven billion tokens.
USDT consists of more than 81,500,000,000 dollar-pegged tokens, while USDC is still less than 30,000,000,000 tokens. No comparable stablecoin exists.
Some contend that historically, the supply of USDT has indicated the direction in which the price of Bitcoin or the entire cryptocurrency market will trend.
Simon Cousaert, a research director at The Block, explained, “In general, Tether issues new USDT when they observe and anticipate increased demand.” This indicates that new funds are entering the system, which is typically used to purchase bitcoin, ether, and other cryptocurrencies.
“I don’t subscribe to Tether conspiracies, but I do subscribe to supply and demand,” filbfilb, the founder of Decentrader and a prominent crypto trader, once tweeted in reference to the relationship between USDT’s supply and the bitcoin price in 2020, when the leading cryptocurrency was trading for less than $11,000.