Thomas Daniels
Tether has issued $1 billion in new USDT tokens on the Tron blockchain, a development that coincides with a rising stablecoin market capitalization. The transaction, completed on July 24, was noted by blockchain analytics firm Arkham and did not incur any transaction fees, a move often viewed as bullish in the cryptocurrency space.
The issuance comes amid a broader trend of increasing stablecoin circulation, particularly since June 29, according to an email from a Nansen team member to crypto.news. Despite the growing supply, experts at Nansen caution against interpreting this as a straightforward signal of impending price increases.
“Considering the various factors at play in October 2023 and now, it’s challenging to attribute potential price movements solely to this increase,” a Nansen analyst commented. They emphasized the importance of looking at on-chain decentralized exchange volumes, address statistics, and off-chain data such as exchange-traded fund flows, macroeconomic outlooks, and monetary policies.
The overall cryptocurrency market has yet to show clear signs of a significant price uptick, even as the stablecoin market cap has surpassed $160 million after a period of stagnation. The growing circulation of stablecoins, including Tether’s USDT, Circle’s USDC, Maker’s DAI, Paxos’ PYUSD, and USDD, indicates evolving user demand.
