Cryptocurrency NewsTether issues 1 billion USDT on Tron, market dominance at 65%

Tether issues 1 billion USDT on Tron, market dominance at 65%

Tether Treasury has created 1 billion USDT, equivalent to $1,000,485,000, on the Tron network, as per an update on July 12. Following a previous billion-dollar issuance in April, the stablecoin issuer has once again achieved this milestone with its latest mint. The chief technology officer of Tether, Paolo Ardoino, explained that this recent minting of USDT is part of Tether’s process to replenish its inventory on Ethereum.

It is important to note that this issuance will not impact the overall market capitalization of USDT, as it is categorized as an “authorized but not issued transaction.” Ardoino clarified that the newly minted USDT will serve as inventory for future issuance requests and chain swaps.

A chain swap refers to the practice employed by traders to transfer their digital assets from one blockchain to another. This allows traders to access additional blockchain networks that support the cryptocurrency they own, enabling them to utilize their digital assets across multiple blockchains.

According to data from Coingecko, USDT’s market value has increased by $2.6 billion in the last three months, while its major competitor, USDC, has decreased by $4.6 billion.

As of now, USDT holds 65% of the total market value of stablecoins, claiming market dominance, while USDC holds 21.4%.

In response, Santiment, in a recent analysis, advises traders to closely monitor the supply of tether (USDT) and US dollar coin (USDC) on exchanges. 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 crypto asset prices, potentially indicating market trends or upcoming events.

Regarding USDT trading on Binance.US on July 10, Paolo Ardoino addressed concerns on Twitter. He stated that the deviation from the dollar peg is specific to the exchange and appears to impact all cryptocurrencies on the platform, with a widespread -8% spread. Ardoino attributed this situation to the ongoing legal challenges faced by Binance.US, mentioning that fewer market makers may be willing to engage in arbitrage at this time. Notably, on Binance Global, USDT is trading only one basis point above the dollar, highlighting the difference between the two platforms.


Join us

- Advertisement -