Tether Mints $1 Billion USDT Tokens on Tron Network Amid Demand Surge
Tether announced the minting of an additional 1 billion USDT tokens, bringing the total minted in the past year to $33 billion. These tokens were minted on the Tron network and transferred to Tether's treasury wallet.
Whale Alert confirmed this transaction on Tuesday at 20:43 (UTC). The minting has led to speculation regarding increased demand and a potential price surge.
— Whale Alert (@whale_alert) October 29, 2024
Tether CEO Confirms New Mint Order
Paolo Ardoino, Tether’s CEO, stated that the recent mint order was “authorized but not issued.” This means the newly minted USDT tokens are not circulating but are stored for future issuance requests. The minting order is listed on Tether’s transparency page, with $1.05 billion categorized as authorized but not yet issued.
USDT Issuance on Tron Reaches $20 Billion
The demand for Tether is highlighted by the $20 billion in tokens minted on the Tron network last year. Tron accounts for over half of all USDT tokens in circulation. As of October 29, about $120 billion in Tether tokens are in circulation, with more than 51% stored on the Tron network. Ethereum holds the second-largest reserve at approximately 45% of $55 billion. Tether maintains a dominant position as a stablecoin issuer, comprising over 67% of the total stablecoins in circulation.
Future Outlook for Tether
The latest mint order raises questions about the future of Tether’s USDT tokens. Analysts suggest that the increase in Bitcoin prices may correlate with higher stablecoin demand. Historical trends indicate that minting stablecoins often signifies rising demand for cryptocurrencies during bullish market conditions. For instance, Tether's introduction of $3 billion worth of USDT last August stabilized Bitcoin's price after it dipped below $50,000.
Featured image from Tether.io, chart from TradingView