Tether issues 1 billion USDT on Tron, market dominance at 65%
Tether Treasury has minted 1 billion USDT, equivalent to $1,000,485,000, on the Tron network, per an update on July 12.
Just two months after its previous billion-dollar mint on April 21, the stablecoin issuer has once again achieved a billion-dollar milestone with its latest mint.
Monitoring the market
Tether’s chief technology officer (CTO), Paolo Ardoino, explained that the recent minting of USDT is a part of Tether’s “inventory replenish” process on Ethereum.
Notably, this issuance will not affect the overall market capitalization of USDT, as it is classified as an “authorized but not issued transaction.”
Ardoino clarified that the newly minted USDT would serve as inventory for future issuance requests and chain swaps.
A chain swap refers to a method employed by traders to move their digital assets from one blockchain to another. This process enables traders to gain access to additional blockchain networks that support the cryptocurrency they possess, granting them the opportunity to utilize their digital assets across multiple blockchains.
According to data from Coingecko, USDT’s market value is up $2.6 billion in the last three months, while its major competitor, USDC, shrunk by $4.6 billion.
At the time of writing, USDT claims market dominance with 65% of the total market value of stablecoins, while USDC holds 21.4%.
In response, Santiment shares in a recent analysis that they advise traders to keep a close eye on the supply of tether (USDT) and US dollar coin (USDC) on exchanges, as this metric can serve as an indicator of potential price movements in the cryptocurrency market.
Santiment suggests that fluctuations in the supply of these stablecoins could signify significant developments in the crypto asset prices, hinting at possible market trends or upcoming events.
USDT depegs
This is not the only time Paolo Ardoino has been active on Twitter the last couple of days, as he took to his account to address concerns surrounding USDT trading on Binance.US on July 10.
Then, he revealed that the deviation from the dollar peg is exclusive to the exchange, where a widespread -8% spread seems to impact all cryptocurrencies on the platform.
Ardoino attributed this situation to the ongoing legal challenges faced by Binance.US, stating that fewer market makers may be willing to engage in arbitrage at this particular moment.
Notably, on Binance Global, USDT is trading at a mere one basis point above the dollar, highlighting the distinction between the two platforms.
