Tether, a leading stablecoin issuer, has issued an additional 2 billion USDT on the Tron blockchain just days after minting 1 billion USDT. This action follows Bitcoin regaining the $100,000 mark.
New issuance of USDT
According to blockchain tracker Whale Alert, the 2 billion USDT was minted in two separate 1 billion transactions. Tether CEO Paolo Ardoino clarified that the minting is part of routine operations and not a response to the recent market drop.
Market reaction
While the newly issued USDT will not be circulating immediately, traders may interpret it as a signal of potential future market movements. Historically, such minting has been followed by significant Bitcoin rallies, usually linked to greater fiat inflow and large buys on exchanges like Bitfinex.
Future market impact
With the stablecoin issuance heating up and Bitcoin trading above 100K, questions arise on how the new USDT supply will influence future market momentum. Other issuers like Circle and Ripple are also increasing their token supplies amid evolving regulations.
Thus, Tether's actions to increase USDT supply in the context of growing interest in Bitcoin may become a key factor influencing further movements in the cryptocurrency market.