Tether, one of the largest stablecoin issuers, has recently made a significant move in the cryptocurrency market. With the release of an additional 1 billion USDT on the Ethereum and TRON networks, Tether aims to solidify its market dominance and enhance its interoperability.
Whale Alert, an on-chain analytics account known for monitoring significant cryptocurrency transactions, drew attention to this latest move by Tether.
In response to Whale Alert’s tweet announcing Tether’s 1 billion USDT inventory replenishment on the Tron Network, Tether’s CTO Paulo Adoino replied in a tweet stating that the issuance was authorized but not yet issued, indicating that the tokens will serve as inventory for future issuance requests and chain swaps.
PSA: 1B USDt inventory replenish on Tron Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.https://t.co/Y1bqxZglgR
— Paolo Ardoino 🍐 (@paoloardoino) July 12, 2023
Tether’s issuance of 1 billion USDT on the TRON network could underscore a rise in demand for the stablecoin, which would explain why the company has minted such a significant supply for future purposes.
USDT Growing Dominance: Market Cap Soars Amidst Stablecoin Shifts
Amidst the rapidly evolving cryptocurrency market, Tether’s market dominance is becoming increasingly evident. Recent data from Coinecko reveals that over the past 90 days, USDT’s market capitalization has surged by $2.6 billion, highlighting its growing importance in the cryptocurrency landscape.
In stark contrast, USD Coin (USDC), another major stablecoin, has experienced a decline of $4.6 billion in its market capitalization during the same period.
USDT is the largest stablecoin with over $83 billion market cap | Source: Market Cap USDT on TradingView.com
These figures indicate a significant shift in market dynamics, with USDT emerging as the leading stablecoin in terms of market cap. With around 65% of the total market cap of stablecoins, Tether continues to solidify its position as a trusted and widely adopted digital currency.
What This Means For The Crypto Market
A large influx of stablecoins into the crypto market can often serve as a bullish indicator for digital assets in the space. This is because the more USDT is available in the market, the more buying power is present.
A Tuesday report on the on-chain data analytics platform Santiment points to this where investors were advised to keep an eye out for the supply of stablecoins on exchanges. According to the report, an increase in stablecoins such as USDT and USDC could mean that something is “brewing” in the market.
In the case of the newly minted USDT, if the majority of the stablecoins find their way to centralized exchanges, then it could mean that investors are looking to move into more volatile cryptocurrencies.
In such a scenario, the rising demand would translate into a bullish rally for assets such as Bitcoin and Ethereum, triggering a bull run.
Featured image from CoinSwitch, chart from TradingView.com