Tether, the creator of USDT, has utilized its treasury to generate a substantial volume of its stablecoin. According to on-chain data, Tether Treasury produced 1 billion USDT on May 16, specifically at 16:50 UTC.
Due to Tether's dominant position in the market, there is speculation that this significant issuance of USDT could influence movements within the cryptocurrency market.
The recent USDT minting by Tether and its effects on the market
The CEO of Tether, Paolo Ardoino, explained the background of this significant minting. He clarified that this was an approved transaction that had not yet been issued while indicating that one billion USDT had been added to the Tron Network's inventory.
He went on, "meaning that this amount will be used as inventory for chain swaps and issuance requests for the next period."
On April 16, after a liquidity drain in the market, Tether last created USDT. A study from Lookonchain, an on-chain analytics tool, claims that Tether Treasury has made 31 billion USDT in the last 12 months. These sums were generated on the Ethereum and TRON blockchains.
It's interesting to consider that Tether created these USDT during the decline of Bitcoin's (BTC) price to around $64,600. Every rise in the USDT supply since the end of 2022 has typically had a favorable impact on the evolution of the price of Bitcoin.
CryptoQuant data shows a strong relationship between the supply of USDT and changes in the price of Bitcoin, which causes volume to rise and creates a dynamic environment for the price of Bitcoin. As a result, there is conjecture in the cryptocurrency world that the additional funds may be utilized to drive up the price of Bitcoin. Furthermore, according to Lookonchain's analysis, Bitcoin broke through the $70,000 barrier last year thanks to the USDT that was created.
It stated, "The price of Bitcoin increased from $27,000 to $73,000 due to these newly issued USDT."
In the past day, the price of Bitcoin has remained steady between $64,000 and $66,000 despite this conjecture. Bitcoin saw fluctuations last week between $60,000 and $62,000 prior to the publication of US inflation figures. The price of Bitcoin increased from $62,000 to $66,000 following the release of April's inflation figures, which suggested that inflation may be decreasing.
May 2024, Cryptoniteuae