Friday , May 24 2024
Home / Altcoins / Tether Mints Massive One Billion USDT Stablecoins on Ethereum Extending Its Market Dominance

Tether Mints Massive One Billion USDT Stablecoins on Ethereum Extending Its Market Dominance

Summary:
Tether CTO Paolo Ardoino called the minting of the new stablecoins as part of replenishing its inventory. USDT-stablecoin issuer Tether is making yet another move to extend its dominance in the 2 billion stablecoin market. Last night, Tether announced the minting of another one-billion USD-pegged token on the Ethereum blockchain network. Tether CTO Paolo Ardoino called the minting of the new stablecoins as part of replenishing its inventory. He further added that it was “an authorized but not issued transaction, meaning that this amount will be used as inventory for the next period [of] issuance requests and chain swaps”. As we know, Tether’s USDT is the most dominant stablecoin in the market currently. With a market cap of billion, it is also the third-largest digital asset

Topics:
Bhushan Akolkar considers the following as important: , , , , , , , ,

This could be interesting, too:

Steve Muchoki writes a16z Crypto Publishes Web3 Letter Ahead of Major Regulatory Clarity in US

staff writer writes Crypto Boom: Market Surges by 0B as BTC and ETH Hit 6-Week Highs

Temitope Olatunji writes Arthur Hayes Proposes Solution to Strengthen Yen and Its Impact on Dollar

Anisha Pandey writes Notcoin to Double Cardholder Revenue amid Hamster Kombat’s Explosive Growth

Tether CTO Paolo Ardoino called the minting of the new stablecoins as part of replenishing its inventory.

USDT-stablecoin issuer Tether is making yet another move to extend its dominance in the $132 billion stablecoin market. Last night, Tether announced the minting of another one-billion USD-pegged token on the Ethereum blockchain network.

Tether CTO Paolo Ardoino called the minting of the new stablecoins as part of replenishing its inventory. He further added that it was “an authorized but not issued transaction, meaning that this amount will be used as inventory for the next period [of] issuance requests and chain swaps”.

As we know, Tether’s USDT is the most dominant stablecoin in the market currently. With a market cap of $81 billion, it is also the third-largest digital asset currently in the crypto space. Although there have been allegations in the past about Tether issuing more stablecoins than the cash reserves, they aren’t proven so far. Furthermore, Tether has also managed to swiftly handle liquidity even during tough market conditions as well as the crypto winter of 2022.

Tether is also among the dominant stablecoin issuer on the Ethereum blockchain network. The total amount of USDT on the Ethereum blockchain network is more than 35 billion tokens. Its closest competitor is the Circle-issued USDC coins, which are less than 30 billion tokens.

Does USDT Stablecoins Issuance by Tether Indicate Any Upcoming Market Trend?

Smart investors often look at stablecoin supplies to predict future market trends and momentum. Some also argue that the USDT supply is indicative of the direction of movement for the Bitcoin price, or the crypto market as a whole. Simon Cousaert, a research director at The Block, explained:

“Generally, Tether issues new USDT when they see and anticipate higher demand for it. This indicates new cash is coming into the system — generally used to buy bitcoin, ether and other cryptocurrencies.”

BDC Consulting also conducted correlation tests while concluding that the supply of USDT “does feature a strong and statistically significant correlation” with the bitcoin price. “The resulting model with market entries and exits timed with the USDT supply spikes yielded an ROI [return on investment] of 229%, showing that stablecoin supply data can be used in trading,” it said.

In another development, TrueUSD stablecoin has emerged as the most used stablecoin for trading Bitcoins on the Binance crypto exchange. The dominance of the TrueUSD stablecoin in Bitcoin trading grew after Binance scrapped zero-fee Bitcoin trading promotions on March 22, except for the Bitcoin-TrueUSD. Currently, TrueUSD contributes a 50% share of Bitcoin trading volumes on Binance.

Altcoin News, Blockchain News, Cryptocurrency news, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

Leave a Reply

Your email address will not be published. Required fields are marked *