Tether stablecoin issuer has added 3 billion USDT to its circulating supply in just one week. The addition of new tokens has raised concerns among traders and analysts about its effect on the cryptocurrency market.
Tether Mints 3B USDT in One Week
Blockchain analysis firm Lookonchain highlighted a major transaction related to Tether in its latest report. In the past week alone, the crypto company has issued 3 billion USDT for circulation. This action was mainly executed through the various leading exchanges, with a large part executed by Cumberland, a leading crypto trading firm.
Tether(@Tether_to) minted 3B $USDT in just 1 week!
Where did these $USDT flow to?
On-chain data shows that 3.22B $USDT has flowed from #TetherTreasury to exchanges since Aug 5.
Of these, 1.75B $USDT flowed into #Kraken, #OKX, #Coinbase, #Binance, and https://t.co/pkH43dUMEz… pic.twitter.com/QZurcSxfxg
— Lookonchain (@lookonchain) August 21, 2024
In particular, 1.75 billion USDT was transferred to various exchanges, including Kraken, OKX, Coinbase, Binance, and Bullish.com. Moreover, the stablecoin entity sent another 1.29 billion to Kraken via a defined deposit address labeled ‘TQef1’.
The remainder of the minted coins found their way to specific wallets, including a notable deposit address, indicating strategic placements that suggest preparations for future market movements.
Market Response and Speculation
The USDT minting occurs during a period when past trends indicate that an increase in Tether’s stablecoin supply is often associated with rising cryptocurrency prices. Crypto analyst Ali Martinez said it resembled a central bank for the crypto space, with such moves frequently taking place before substantial market volatility.
More so, Social media, especially X (formerly Twitter), has been buzzing with the cryptocurrency community speculating about a potential bull run. Market analysts and traders are keen to monitor how these developments will impact trading strategies and the prices of cryptocurrencies across different platforms.
Stablecoin Launch Plans
In addition, the USDT issuer announced plans to launch a new stablecoin pegged to the UAE’s dirham. This move aims to tap into the growing demand for alternatives to traditional currencies like the USD, leveraging the UAE’s economic stability and its rising profile as a global crypto hub.
The initiative also aligns with the broader strategy to diversify its offerings and enhance the usability of its tokens in various economic landscapes. By introducing a dirham-pegged stablecoin, the company provides traders and investors with more options for trading in the fluctuating crypto market.
Additionally, the stablecoin issuer recently expanded its technological footprint by launching USDT on the Aptos network. This integration will capitalize on the network’s advanced blockchain infrastructure and scalability.
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