Stablecoin issuer Tether minted $1 billion in USDT tokens on the ethereum blockchain, capitalizing on a market rally fueled by hopes that the U.S. Securities and Exchange Commission (SEC) could approve a Spot eth ETF to trade this week.
Whale alert first x.com/whale_alert/status/1792936762764857687″>reported the coinage, which was later confirmed by Tether CEO Paolo Ardoino, who x.com/paoloardoino/status/1792936969099436113″>wrote:
“PSA: Billion dollar inventory replenishment on the ethereum network. Please note that this is an authorized but non-issued transaction, which means that this amount will be used as inventory for issuance requests and on-chain exchanges in the next period.”
Inventory Replenishment
Market analysts suggested that the new Tether minting is a strategic move ahead of a possible market rally triggered by the approval of an eth ETF. Ivan Sherbakov, CEO of Cryptorobotics, x.com/sherbakov_btc_/status/1792937346137985138″>saying
This analysis aligns with data showing a correlation between the growing supply of USDT and a broader upward movement in the cryptocurrency market, leading to higher volumes and a more dynamic environment for digital assets.
Typically, Tether inventory replenishment involves the creation of new USDT tokens in anticipation of increased customer demand. These tokens, which are held in Tether's treasury, are classified as “sanctioned but not issued,” meaning they are not yet in circulation or included in the current total market capitalization of USDT.
According to Tether transparency pageThere was $87.8 million worth of USDT on ethereum as of May 21. Over the past year, Tether's market capitalization has grown significantly, surpassing $110 billion and controlling around 70% of the market, according to CryptoSlate data.
This growth can be attributed to several factors, including the successful launch of spot bitcoin ETFs in the US. Additionally, Tether has had varying degrees of success in its other endeavors, including diversifying its operations beyond its flagship currency product. stable USDT towards other sectors such as bitcoin mining.
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