David Edwards
Etherscan data shows that Tether Treasury created extra $1 billion USDT on the Ethereum network on November 18. This transaction marks Tether’s ongoing attempts to satisfy growing market demand, after a similar issuing earlier in the month on the Tron network.
Authorized but not yet distributed, the freshly produced stablecoins will apparently stay in Tether’s reserves to meet future liquidity demands across on-chain transactions. With Ethereum and Tron networks holding the most shares of permitted USDT at $62.9 billion and $62.7 billion respectively, over $125 billion USDT is in circulation as of yet.
Increasing Availability to satisfy Demand in the Market
This release follows a larger pattern for Tether, which only days ago produced $1 billion USDT on the Tron network. These transactions start from black hole addresses according to Arkham Intelligence, then go to Tether’s multi-signature wallets and finally to its treasury.
Tether CTO Paolo Ardoino emphasized in August that comparable large-scale issuances were meant to boost liquidity and augment reserve supply of the company. Tether Treasury has coined 32 billion USDT overall throughout its supported networks this year alone.
Rising Dominance of Tron in the Stablecoin Market
Driven by staking (73%) and token burning (26%), Tronscan data shows $577 million in income for Q3, indicating a spike in activity in 2024. Tron’s creator, Justin Sun, said that the network’s development into NFTs, Memecoins, and DeFi explained this increase. With 35% of all stablecoins in use accounted for, Tron has become the second-largest stablecoin network according to DefiLlama.
In areas devastated by inflation, where stablecoins are preferred for their sturdiness, Tron’s popularity has skyrocketed Token Terminal pointed out that Tron’s cheap transaction costs provide it a competitive advantage, therefore placing it as a formidable rival against Ethereum and Bitcoin in the stablecoin scene.
Market trends and stablecoins
The stablecoin market still shapes more general tendencies in cryptocurrencies. Since the U.S. presidential elections earlier this month, CryptoQuant documented $3.2 billion worth of USDT transactions on controlled exchanges. Often indicating positive tendencies for digital assets, analysts like Julio Moreno have observed that the rising market capitalization of stablecoins increases liquidity across the crypto ecosystem.
Reduced stablecoin issuing, however, would point to declining interest in cryptocurrencies, which emphasizes the need of tracking these minting trends for market insights.
