The most recent information from blockchain monitoring and analytics firm Whale Alert indicates that the Tether Treasury has coined 1 billion USDT.
The transaction, which was visible on the Ethereum network, has significantly increased the quantity of Tether in circulation and is a component of Tether’s plan to control market liquidity.
The reason behind the issuance
Paolo Ardoino, CEO of Tether, explained the details of the deal on X. “Inventory replenish” is the reason for the minting, according to Ardoino, who also emphasised that it’s a “authorised but not issued transaction.”
This implies that the quantity that was coined will be kept on hand as inventory in order to satisfy demands for future issuance and enable chain swaps as required.
In essence, the recently created USDT is not yet in use and will only be made available to the public in response to demand.
A $91 billion cryptocurrency
When the cryptocurrency markets are doing well, investors usually transfer a lot of money in and out of different cryptocurrencies. For traders wishing to lock in profits or take on fresh positions without completely leaving the cryptocurrency market, USDT provides a reliable middleman. It provides refuge in the midst of the extreme volatility that bull runs frequently bring.
Data from CoinMarketCap indicates that Tether’s market capitalization is now a healthy $91.2 billion.
The leading cryptocurrency had a sharp rise, rising from $65 billion to the present amount.
Other stablecoins are far from becoming as competitive as USDT. Ranked seventh with a $25 billion market capitalization is USD Coin (USDC).
