The Tether Treasury has minted 1 billion USDT, according to the latest data from blockchain tracker and analytics system Whale Alert.
The transaction, which was recorded on the Ethereum network, has added a significant amount to Tether's circulating supply and is a part of Tether's strategy to manage liquidity in the cryptocurrency market.
The reason behind the issuance
Tether CEO Paolo Ardoino took to X to clarify the nature of the transaction. Ardoino stated that the minting is for "inventory replenish" on the Ethereum Network, emphasizing that it's an "authorized but not issued transaction."
This means that the minted amount will be held as inventory to fulfill future issuance requests and facilitate chain swaps as needed.
Essentially, the newly minted USDT is not yet in circulation and will only be released into the market in response to future demand.
A $91 billion cryptocurrency
During periods of bullish activity in the crypto markets, investors typically move large amounts of capital in and out of various cryptocurrencies. USDT offers a stable intermediary for traders looking to secure profits or enter new positions without exiting the crypto space entirely. It acts as a haven during the high volatility that often accompanies bull runs.
Tether's market cap currently stands at a robust $91.2 billion, according to CoinMarketCap data.
The flagship cryptocurrency experienced a massive increase from $65 billion to the current figure.
Other stablecoins do not come close to challenging USDT. USD Coin (USDC) ranks seventh with a market cap of $25 billion.
Tomiwabold Olajide
Yuri Molchan
