Crypto Market Likely to Surge as Tether Generates $1 Billion USDT on Ethereum
Tether’s recent minting of $1 billion in USDT could potentially spark a reversal rally in the broader crypto market, putting an end to its recent downtrends. The leading crypto tracking service, Whale Alert, highlighted Tether’s injection of $1 billion into the Ethereum network. This transaction, executed at 05:40 AM (UTC) today, saw Tether replenishing its USDT Treasury on the world’s largest smart contracts platform.
Following the minting, Tether’s CEO Paolo Ardoino emphasized that the $1 billion USDT had been authorized for addition to the treasury but had not yet been released into circulation. Ardoino clarified that Tether planned to utilize the funds as inventory for future issuance or chain swaps.
Ethereum stands as the second-largest network for USDT, according to Tether’s transparency page. As of September 16, Tether has approved a total of $54.981 billion USDT on the Ethereum blockchain. Of this sum, $53.977 billion USDT is currently in circulation, while $1.003 billion USDT remains “authorized but not issued.”
The influx of stablecoins into the crypto market continues to grow, with over $3.65 billion USDT entering or set to enter the market. Rhino Bitcoin, a popular crypto trading app, reported the significant flow of USDT over the past 30 days, marking a notable uptick reminiscent of the period when Bitcoin reached new all-time highs in the spring.
Investors often use stablecoins like USDT to trade other cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and XRP (XRP). Conversely, during market downturns, participants tend to exchange their preferred tokens for USDT or other stablecoins. The recent surge in USDT inflow, as noted by Rhino, suggests that investors may be gearing up to acquire more cryptocurrencies, potentially influencing their prices.
Despite this positive development, the crypto market has experienced a decline today, with the global market cap dropping by 3.32% in the past 24 hours to $2.03 trillion. Bitcoin, which recently surpassed the $60,000 resistance level on September 13, is currently trading at $58,101.
It’s essential to note that the information provided is for educational purposes only and should not be construed as financial advice. Readers are urged to conduct thorough research before making any investment decisions, as the opinions expressed in this article are personal and do not necessarily reflect those of The Crypto Basic. The Crypto Basic holds no responsibility for any financial losses incurred.
