Yesterday afternoon, the stablecoin issuer Tether finalized the minting of 1 billion USDT, adding an equivalent of 1,000,497,499 US dollars to its Treasury.
This is yet another increase in the circulating supply of Tether, which in recent days has been adding more and more fuel to the crypto financial markets.
Usually these frequent minting activities precede periods in which Bitcoin or other cryptocurrencies increase in price, as the main characteristic of stablecoins is to be used as a counterpart for trading.
Meanwhile, several addresses that have deposited funds with Tether’s Treasury are sending their USDT to various centralized exchanges, presumably with the idea of exchanging them for BTC or altcoins.
All the details below.
Tether and the minting of 1 billion USDT: the stablecoin’s market capitalization exceeds 94 billion dollars
The rise of Tether, the issuer of the USDT stablecoin, seems to be unstoppable: yesterday another billion tokens were issued on the Ethereum blockchain, adding a dollar equivalent value almost identical to the company’s treasury.
The minting of the new USDT follows further increases in the circulating supply of the stablecoin, which in the last week has added approximately $2.25 billion in market capitalization.
In the last month, the growth has been over 4 billion, while if we consider the last year, the numbers rise to a whopping 28 billion dollars.
Compared to other competitors like USDC, DAI, and TUSD, Tether is increasing its presence in the cryptocurrency markets, increasing the available liquidity for exchanges and pushing up the prices of the main cryptocurrencies in the sector.
Thanks to its contribution, Tether is pushing the overall market capitalization of stablecoins, which has been rising for 15 consecutive weeks now.
According to the data presented by The Block, the USDT resource now boasts a presence of approximately 48.9 billion tokens on the Tron network and 44 billion on the Ethereum network, as well as minimal participation on other blockchains such as BSC, Arbitrum, and Solana.
Since 2020, the company with operational base in Hong Kong and legal headquarters in the British Virgin Islands, has grown exponentially without any significant downturns.
Regarding the latest “press release” yesterday in which 1 billion USDT were issued, Tether’s CTO Paolo Ardoino spoke up to explain to his stakeholders the nature of this operation.
According to his own statement, the minting was done for inventory purposes on the Ethereum blockchain.
In reality, the transaction has been authorized but not issued: this means that the billion of cryptographic money is not yet available in liquid form on the markets but will be used in the future to make minting requests and chain swaps.
Normally, the operation of creating new stablecoins by Tether precedes a period of rise in the major crypto assets, since USDT represents the most widely used counterpart in the world for trading on CEX.
In essence, when new USDT is issued on the market, it is usually because they need to be used to purchase BTC, ETH, or rarely other altcoins.
Bull run incoming: whales are getting ready by sending USDT to exchanges
Ignoring the recent minting of 1 billion USDT by Tether, whose purpose was revealed by the company’s CTO shortly after, we can say that generally many whales are preparing for the next crypto market bull run by adding stablecoins to their wallets.
Many reports have been recorded in recent days by on-chain data analysts, indicating suspicious flows of USDT to the major exchanges in the sector.
When a stablecoin is sent to a centralized exchange, it is usually because it needs to be used to purchase a volatile asset such as BTC or ETH.
On the contrary, when BTC or ETH are transferred from private wallets to exchanges, it is because they generally want to be sold, taking advantage of a more liquid market than decentralized or P2P alternatives.
A few hours ago, the “Tether Monitor” account highlighted how a user transferred a whopping 45 million USDT from Tether to Bitfinex, leveraging the cryptographic network of Ethereum.
The influencer “Evan Luthra”, instead, has reported a much more significant case, where an anonymous address seems to have accumulated over 2.8 billion dollars in 3 months.
This money has recently started to be transferred to exchanges like Coinbase, Kraken, and Okx.
The whale has accumulated liquidity for months and now wants to use it to push for a rally on Bitcoin, Ethereum, and the rest of the market.
Also note how these movements usually magically coincide with very important events for the cryptocurrency market.
The latest strange coincidence concerns an unknown user who, yesterday, sent 160 million USDT to a multitude of centralized platforms, just a few hours before the fake news of the approval of the Bitcoin spot ETF by the SEC.
The on-chain data flow has been reported by the company Scopescan, which has noticed the impeccable timing with which the operations have taken place.
Without supporting conspiracy theories (as there is no data confirming this strange relationship), there remains the benefit of the doubt regarding a particularly large transfer of funds, which occurred at a time when investors were particularly attentive, coinciding with a scandal (SEC fake news) that remains highly suspicious to the eyes of the most experienced data breach experts.
Let it be clear, we are not blaming anyone, but it really seems that right in front of us there is the address of an insider who knew very well what would happen last night on the x account of the market surveillance commission.