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As Tether mints $1 billion in USDT today, the broader crypto market could witness a sharp reversal rally, ending its latest drawdowns.
Leading crypto tracking service Whale Alert took to X to index Tether’s recent minting of $1 billion on the Ethereum network. The transaction, which occurred today at 05:40 AM (UTC), saw Tether replenish its USDT Treasury with $1 billion on the world’s largest smart contracts platform.
Tether CEO Reacts
Shortly after the minting, Tether’s CEO Paolo Ardoino emphasized that the 1 billion USDT has been authorized to be added to the treasury. Despite this, Ardoino clarified that the funds had not been released into circulation. He noted that Tether would release the funds as inventory for next-period issuance or chain swaps.
Ethereum Ranks as Second-Largest Network for USDT
According to Tether’s transparency page, Ethereum ranks as the second-biggest network for USDT. As of September 16, Tether has authorized a total of $54.981 billion worth of USDT on the Ethereum blockchain.
Of this amount, $53.977 billion USDT is in circulation, while $1.003 billion USDT has been “authorized but not issued.”
Over $3.6B in USDT Enters Crypto Market in 30 Days
Meanwhile, the $1 billion USDT adds to the large influx of stablecoins that have entered or are preparing to enter the crypto market. Popular crypto trading app Rhino Bitcoin reported that $3.65 billion worth of USDT has been sent into the crypto market over the past 30 days.
Over the past 30 days, more than $3.65 billion in USDT flowed into the market.
We have not seen such a rapid rise in USDT since Bitcoin rose to new all-time highs in the spring. pic.twitter.com/DqrcpCxLS1
— Rhino Bitcoin App (@RhinoBTCapp) September 16, 2024
The Rhino team disclosed that the last time it observed this massive inflow was in Spring when Bitcoin registered a new all-time high. This suggests that the recent inflow of USDT into the market is unusual and could be triggered by anticipation of significant price upticks.
Typically, investors leverage stablecoins such as USDT to buy other cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP (XRP). Conversely, market participants swap their favorite tokens for USDT or other stablecoins during heightened drawdowns.
Given Rhino’s comment, the surge in USDT inflow implies that investors could be preparing to acquire more cryptocurrencies, potentially driving their prices.
In the meantime, the crypto market has been on a decline for most of today. The global crypto market cap has registered a decrease of 3.32% over the past 24 hours to $2.03 trillion. Specifically, Bitcoin, which surged above the $60,000 resistance level on September 13, is trading at $58,101.