Tether (USDT) minted 4 billion dollars in November - How will it impact the market?
Significance of this Movement: The issuance of 4 billion USDT holds substantial weight in the context of Tether's total issuance for the year. Whale Alert data indicates that Tether's total issuance in 2023 is around 22.75 billion USDT, with 57% issued on the Tron blockchain and the remaining 43% on the Ethereum blockchain.
In the past month, Tether, a top-five cryptocurrency by market capitalization, has released a staggering 4 billion USDT, representing nearly 18% of the total circulating supply in 2023. This sudden surge in USDT issuance has captured significant attention within the cryptocurrency community, raising questions about its potential impact on the market.
Rapid USDT Issuance: According to Whale Alert data, Tether issued 1 billion USDT on the Tron blockchain on November 10, followed by another 1 billion USDT on Ethereum on November 9. Prior to this, Tether had issued 2 billion USDT in two batches on the Tron blockchain on November 3 and October 19. Paolo Ardoino, Tether's Chief Technology Officer and new CEO, commented on the recent Tron transaction, describing it as a "USDT inventory replenish" for future issuance requests and chain swaps.
Tether's Minting and Redeeming History: Tether has displayed an active approach to minting new USDT stablecoins throughout the year. Particularly, in March 2023, Tether minted an impressive 9 billion USDT, complementing the 3 billion minted the previous month. The stablecoin issuer has also engaged in coin burning activities, with 1.2 billion USDT burned on the Tron blockchain on August 22 and significant burns in June and February on both Tron and Ethereum blockchains, according to Whale Alert data.
Market Reaction and Historical Observations: The cryptocurrency community has responded swiftly to the recent USDT minting transactions, with some observers drawing parallels to previous instances where aggressive Tether minting coincided with turmoil in cryptocurrencies. Notably, in March 2023, when significant Tether printing occurred, several banks, including Silicon Valley Bank, Silvergate, and Signature Bank, experienced operational challenges. Tether later denied allegations of exposure to these banks.
Future Developments: In addition to active minting and burning, Tether is reportedly working on integrating major ecosystem components. Ardoino announced on Twitter that Tether is gearing up to unveil five new projects in 2024, with the potential to impact and revolutionize existing Web2 centralized services.
Conclusion: Tether's rapid issuance of 4 billion USDT in just four weeks has sparked discussions about its implications for the cryptocurrency market. As Tether continues to play a central role in the crypto space, investors and industry observers closely monitor its activities, mindful of the potential impact on market dynamics. As Tether integrates new projects and maintains an active approach to stablecoin management, the crypto community awaits further developments and announcements from the influential stablecoin issuer.