Tether Mints Additional $1 Billion on TRON Following July’s Issue

Tether, the largest stablecoin issuer, minted an additional $1 billion worth of USDT tokens on the TRON blockchain on Tuesday, following a similar issuance on Ethereum earlier in August.

This brings Tether’s total USDT minting over the past year to $33 billion. Tether has minted 19 billion USDT on TRON and 14 billion USDT on Ethereum over the past year.

Tether’s Recent Minting Activity the TRON Blockchain

Blockchain data revealed that Tether minted $1 billion USDT tokens on the TRON network and sent them to its treasury wallet on August 20.

Tether Treasury minted 1B $USDT on #TronNetwork again 25 minutes ago!#TetherTreasury has minted 33B $USDT in the past year, of which 19B $USDT was minted on #TronNetwork and 14B $USDT was minted on #Ethereum.https://t.co/2wFo2DEvz3 pic.twitter.com/DntKu0WC5A

— Lookonchain (@lookonchain) August 20, 2024

Tether’s minting activity intends to support chain swap operations and manage liquidity across various blockchain networks without triggering immediate market fluctuations.

Tether CEO Paolo Ardoino stated the minting on both TRON and Ethereum seeks to replenish the company’s stablecoin inventory, ensuring sufficient supply to meet future issuance requests and manage liquidity.

The issuance of TRON USDT has exceeded $60 billion, which is a significant milestone. We have also become the first blockchain with a single stablecoin surpassing $60 billion! #TRX #TRON https://t.co/AM8cK08npP pic.twitter.com/VsFVNGlo2g

— H.E. Justin Sun 孙宇晨(hiring) (@justinsuntron) July 16, 2024

TRON’s fixed transaction fee of $1 has contributed to its position as the leading blockchain for USDT transactions. USDT’s circulation reached $60 billion on TRON, further underscoring the network’s popularity.

Tether’s consistent USDT minting on TRON reflects the strong demand for stablecoins on the network.

Tether’s Influence in the Stablecoin Market

Tether has been a dominant player in the stablecoin market, and its minting activities are closely monitored by market participants and regulators.

Tether’s USDT issuance has steadily increased over the past year, with notable portions minted on TRON and Ethereum.

In June, Tether discontinued minting on EOS and Algorand blockchains, citing a focus on platforms that best serve the community.

The recent minting of USDT on TRON follows a similar pattern observed in July when Tether minted $1 billion USDT on the same network.

Wow

$1 Billion USDT mint on TRON

$0 paid in fees pic.twitter.com/2sjrQ9zdIA

— Arkham (@ArkhamIntel) July 24, 2024

This activity is part of a broader trend where stablecoin issuers like Tether and Circle mint new tokens to meet rising user demand.

The total stablecoin market cap recently surpassed $160 billion, reflecting the increasing importance of stablecoins in the cryptocurrency market.

It looks like it's not only a big day for ETH…but also for stablecoins!

The total stablecoin market cap has finally started to break $160b after 3 months of remaining relatively flat, highlighting increasing demand and growing confidence in these assets

Bullish. pic.twitter.com/Zv8qe6RTJ7

— Nansen 🧭 (@nansen_ai) July 23, 2024

Stablecoins are becoming increasingly adopted across the cryptocurrency ecosystem, as they offer a fixed value in contrast to the volatility of other cryptocurrencies.

Implications of Tether’s Minting Activity

Minting additional USDT tokens will likely have implications for the cryptocurrency market.

While an increase in stablecoin supply typically indicates strong demand, blockchain analytics firms caution against predicting immediate price increases.

Factors such as on-chain decentralized exchange volumes, address statistics, and off-chain data like exchange-traded fund flows and macroeconomic conditions should be considered before making any definitive market predictions.