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Join WhatsApp channelOn November 18, Tether Treasury minted an additional $1 billion USDT on the Ethereum network, according to Etherscan data. This transaction follows a similar issuance earlier in the month on the Tron network, signaling Tether’s continued efforts to meet rising market demand.
The newly minted stablecoins, authorized but not yet distributed, will reportedly remain in Tether’s reserves to cater to future liquidity needs across on-chain exchanges. As of now, over $125 billion USDT is in circulation, with Ethereum and Tron networks hosting the largest shares of authorized USDT at $62.9 billion and $62.7 billion, respectively.
Expanding Supply to Meet Market Demands
This issuance is part of a broader trend for Tether, which minted $1 billion USDT on the Tron network just days earlier. According to Arkham Intelligence, these transactions originate from black hole addresses before moving to Tether’s multi-signature wallets and ultimately to its treasury.
In August, Tether CTO Paolo Ardoino clarified that similar large-scale issuances were aimed at increasing the firm’s reserve supply and enhancing liquidity. This year alone, Tether Treasury has minted a total of 32 billion USDT across its supported networks.
Tron’s Growing Dominance in the Stablecoin Market
The Tron network has seen a surge in activity in 2024, with Tronscan data reporting $577 million in revenue for Q3, driven by staking (73%) and token burning (26%). Justin Sun, founder of Tron, attributed this growth to the network’s expansion into NFTs, Memecoins, and DeFi. Tron has emerged as the second-largest stablecoin network, accounting for 35% of all stablecoins in circulation, per DefiLlama.
Tron’s popularity has surged in inflation-stricken regions, where stablecoins are favored for their resilience. Token Terminal noted that Tron’s low transaction fees offer a competitive edge, positioning it as a strong contender against Ethereum and Bitcoin in the stablecoin ecosystem.
Stablecoins and Market Trends
The stablecoin market continues to influence broader cryptocurrency trends. CryptoQuant reported $3.2 billion worth of USDT transactions on centralized exchanges since the U.S. presidential elections earlier this month. Analysts like Julio Moreno have noted that the growing market capitalization of stablecoins boosts liquidity across the crypto ecosystem, often signaling bullish trends for digital assets.
However, reduced stablecoin issuance could suggest waning interest in cryptocurrencies, emphasizing the importance of monitoring these minting patterns for market insights.
