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Jimmy Aki
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Jimmy Aki
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The largest stablecoin issuer, Tether, made headlines again by minting an additional $1 billion worth of USDT tokens on the TRON blockchain.
This move follows a similar issuance on Ethereum earlier in August, highlighting Tether’s ongoing efforts to maintain sufficient inventory and manage liquidity across different blockchain networks.
Tether’s Recent Minting Activity the TRON Blockchain
On August 20, blockchain data revealed that Tether minted $1 billion USDT tokens on the TRON network and sent them to its treasury wallet.
This latest development brings Tether’s total USDT minting over the past year to an impressive $33 billion.
Most of these tokens were minted on the TRON network, as the data platform shows that 19 billion USDT were created on the network, and 14 billion USDT tokens were minted on the Ethereum blockchain.
Notably, the recent minting activity is part of Tether’s broader strategy to support chain swap operations and manage liquidity across various blockchain networks without triggering immediate market fluctuations.
According to Tether CEO Paolo Ardoino, the minting on both TRON and Ethereum is intended to replenish the company’s stablecoin inventory, ensuring that there is always a sufficient supply to meet future issuance requests and manage liquidity effectively.
Moreover, TRON has emerged as the leading blockchain for USDT transactions, largely due to its fixed transaction fee of $1.
The network’s popularity was further underscored when USDT reached a significant milestone of $60 billion in circulation.
The consistent minting of USDT on TRON reflects the strong demand for stablecoins on this network, despite Tether’s lack of official statements regarding the recent mint.
Tether’s Growing Influence in the Stablecoin Market and Its Broader Implications
Tether has been a dominant player in the stablecoin market for years, and its minting activities have often been closely monitored by market participants and regulators.
Over the past year, Tether’s issuance of USDT tokens has steadily increased, with significant portions being minted on TRON and Ethereum.
However, as the company claims to focus resources on platforms that best serve the community’s needs, it discontinued minting on EOS and Algorand blockchains in June.
The recent minting of USDT on TRON follows a similar pattern observed in July when Tether minted $1 billion USDT on the same network.
This activity is part of a broader trend where stablecoin issuers like Tether and Circle are increasingly minting new tokens to meet rising user demand.
The total stablecoin market cap recently surpassed $160 billion, reflecting the growing importance of these digital assets in the crypto market.
Notably, this trend aligns with the growing adoption of stablecoins across the crypto ecosystem, as they offer a fixed value in contrast to the volatility of other cryptocurrencies.
However, minting additional USDT tokens will likely have several implications for the broader crypto market.
While the increase in stablecoin supply typically indicates strong demand, experts from blockchain analytics firms caution against predicting immediate price increases.
Factors such as on-chain decentralized exchange volumes, address statistics, and off-chain data like exchange-traded fund flows and macroeconomic conditions must be considered before making any definitive market predictions.
