Tether Treasury has minted an additional 1 billion USDT (Tether) on the Tron network, according to data provided by blockchain sleuth Lookonchain.
This latest issuance is part of a huge expansion streak, with a total of 6 billion USDT tokens being minted across both the Tron and Ethereum networks since Nov. 3.
Why is Tether minting tokens?
Tether's minting of USDT serves several critical functions in the digital asset landscape. Primarily, Tether aims to provide a stable, digital representation of fiat currencies in the blockchain environment.
USDT offers a less volatile option for cryptocurrency users. Thus, it is often acting as a safe haven in times of market turbulence.
Tether mints additional tokens primarily to cater to the escalating demand within the cryptocurrency market and to ensure the stability of its peg to fiat currencies like the US Dollar.
The comeback of stablecoins
Recent data from Glassnode indicates a rejuvenating trend in the stablecoin market. For the first time in over 18 months, there has been a notable expansion in this sector, with Tether's USDT reaching an all-time high market cap of a whopping $89 billion.
The combined market capitalization of major stablecoins has surged by nearly $5 billion over the past month, now standing at $124 billion.
This growth, reversing a downtrend that began in May 2022, marks a significant bullish signal for the cryptocurrency market. Analysts interpret this trend as an indicator of improved liquidity. Most notably, Tether has been at the forefront of this expansion.
Denys Serhiichuk
Godfrey Benjamin
Tomiwabold Olajide
