Rapid Increase in USDT Issuance
In a remarkable development for the cryptocurrency sector, Tether, a major stablecoin issuer, has significantly increased its minting of USDT tokens. In the past month alone, Tether has issued a staggering 4 billion USDT, which accounts for nearly 18% of all USDT issued so far in 2023.
Latest Minting Transactions
According to Whale Alert, a blockchain data provider, Tether added 1 billion USDT to the Tron blockchain on November 10. This followed the issuance of another 1 billion USDT on Ethereum on November 9, and 2 billion USDT on the Tron blockchain earlier in the month. These large-scale minting operations underscore Tether’s growing influence in the stablecoin market.
A Substantial Proportion of 2023’s Minting
This flurry of activity brings Tether’s total USDT issuance in 2023 to 22.75 billion, with the Tron blockchain hosting 57% of these tokens. Ethereum accounts for the remaining 9.75 billion USDT. This distribution highlights the varying preferences and strategies employed by Tether across different blockchain platforms.
Tether’s Minting and Burning Cycles
Tether’s approach to managing its USDT supply involves both minting and burning of tokens. While it minted 9 billion USDT in March and another 3.75 billion USDT mid-year, it also burned significant amounts, including 1.2 billion USDT on the Tron blockchain in August and over 5 billion USDT across Tron and Ethereum earlier in the year.
Cryptocurrency Community’s Response
The crypto community is actively discussing the potential market impact of these minting activities. Some users recall the market fluctuations associated with previous large-scale USDT minting, drawing parallels with significant events in the banking sector.
Tether’s Denial of Bank Exposure
Following the shutdown of banks like Silicon Valley Bank and Signature Bank in March 2023, there were rumors of Tether’s exposure to these institutions. However, Tether has firmly denied any such connections, distancing itself from these banking crises.
Anticipating New Developments
Looking ahead, Tether’s CEO Paolo Ardoino teased the launch of five new projects in 2024, promising innovative advancements that could challenge established Web2 services.
