Tether has recently minted 1 billion dollars in USDT on the Tron network, bringing the total tokens issued in the last year to 33 billion, indicating a growing demand for the stablecoin on this blockchain.
Let’s see all the details below.
Increasing demand for Tether’s USDT on the blockchain: news for the Tron network
As anticipated, Tether, one of the most important stablecoin issuers in the world, has taken another significant step in its expansion.
In particular, it minted 1 billion dollars in USDT on the Tron network on August 20. This new minting brings the total of tokens issued by Tether in the last year to 33 billion dollars, reflecting a growing demand for the stablecoin on different blockchains.
According to the data revealed by the on-chain analysis platform Lookonchain, Tether used its own treasury wallet, known as “Tether Treasury”, for this operation.
Over the past year, the wallet has issued a total of 33 billion dollars in USDT, divided between the two main blockchain networks: Tron and Ethereum.
Specifically, 19 billion USDT were created on the Tron network, while the remaining 14 billion were minted on the Ethereum blockchain.
Tron is establishing itself as one of the leading blockchain networks in the stablecoin market, a rapidly growing segment in the cryptocurrency landscape.
On August 16, data from Coin Metrics highlighted that Tron currently holds 37.9% of the total stablecoin market share, with over 61 billion dollars in stablecoins present on its blockchain.
This success is due to several factors, including the speed of transactions, low fees, and the growing adoption by users.
The minting of an additional billion dollars in USDT on Tron was probably motivated by the need to meet the growing demand for this stablecoin on the network.
On August 19, the Transparency page of Tether indicated that the Tether treasury had only 36 million dollars in USDT on Tron “authorized but not issued,” a sign of a possible shortage of USDT on this blockchain.
Strategies of Tether: replenishment of stocks and liquidity management
The recent minting of 1 billion USDT on Tron follows a similar move that occurred a few days earlier on the Ethereum network.
On August 13, the data tracking platform Whale Alert reported a transaction in which Tether minted an additional billion dollars in USDT on Ethereum.
This operation was described by the CEO of Tether, Paolo Ardoino, as a “stock replenishment”, aimed at ensuring smooth liquidity management.
Similarly to how traditional companies replenish their inventories to meet demand, Tether mints new USDT tokens. This ensures that there is a sufficient supply ready for future issuance requests and chain swaps.
These tokens are not immediately put into circulation, but remain available in Tether’s treasury wallet until it is necessary to distribute them.
This strategy allows Tether to maintain efficient liquidity management. Thus ensuring that the stablecoin is always available in adequate quantities to meet market demand.
Furthermore, this methodology helps to prevent sudden fluctuations in the value of USDT, contributing to the stability of the cryptocurrency market.
The importance of stablecoin in the crypto market
Stablecoins, like USDT, play a crucial role in the world of cryptocurrencies, acting as a bridge between traditional currencies and cryptocurrencies.
Their ability to maintain a stable value, anchored to fiat currencies like the US dollar, makes them fundamental tools for investors and traders looking to mitigate the typical volatility of criptovalute.
The increase in demand for USDT on networks such as Tron and Ethereum is indicative of the growing confidence in the stablecoin system as a means of exchange and store of value.
With the continuous expansion of Tether and the growing adoption of its stablecoins, it is likely that we will see further increases in the amount of USDT minted. As well as greater integration of stablecoins into various blockchain platforms.
With the continuous evolution of the market, it will be interesting to observe how Tether and Tron will adapt to the new challenges and opportunities that will emerge in the world of cryptocurrencies.