In a move that has sent ripples through the cryptocurrency community, leading crypto tracking service Whale Alert revealed that Tether (USDT) recently minted $1 billion on the Ethereum network. This significant transaction, recorded today at 05:40 AM (UTC), saw Tether boost its USDT Treasury with a hefty sum on the world’s largest smart contracts platform.
Tether CEO Addresses Minting Event
Shortly after the minting, Tether CEO Paolo Ardoino took to social media to clarify the situation. Ardoino confirmed that the newly minted $1 billion USDT has been authorized for addition to Tether’s treasury but emphasized that these funds have not yet been released into circulation. Instead, Ardoino explained that the funds are earmarked for future issuance or chain swaps.
Ethereum’s Growing Role in USDT
As highlighted by Tether’s transparency page, Ethereum continues to be a major player in the USDT ecosystem. As of September 16, Ethereum is the second-largest network for USDT, with a total of $54.981 billion authorized on its blockchain. Out of this, $53.977 billion is actively circulating, while $1.003 billion remains authorized but not yet issued.
The timing of Tether’s $1 billion minting aligns with a broader trend of stablecoin inflows into the crypto market. According to popular trading app Rhino Bitcoin, $3.65 billion worth of USDT has entered the crypto market over the past 30 days. This surge is reminiscent of the market movements observed in Spring when Bitcoin hit a new all-time high. Rhino Bitcoin’s analysis suggests that this influx could be signaling a buildup for significant price movements.
Stablecoins like USDT are typically used by investors to purchase other cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and XRP (XRP), during bullish periods. Conversely, they are used to park funds during market downturns. The recent spike in USDT inflows suggests that investors might be gearing up to acquire more cryptocurrencies, potentially driving prices higher.
Also Read: UK High Court Declares Tether (USDT) As Property – First-Ever Ruling On Crypto Status
Market Implications
Despite the positive news surrounding stablecoin inflows, the broader crypto market is experiencing a downturn. The global market cap has decreased by 3.32% over the past 24 hours, currently standing at $2.03 trillion. Bitcoin, which had recently surpassed the $60,000 mark, is now trading at $58,101.
The large-scale minting of USDT and the accompanying stablecoin inflows could signal increased market activity and potential price movements in the coming weeks. As investors prepare to capitalize on anticipated price changes, the dynamics of Ethereum and other major cryptocurrencies could see significant shifts.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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