Originally published on: November 24, 2024
Tether, the stablecoin issuer, has recently minted an additional $3 billion in USDt tokens on the Ethereum and Tron networks. This surge comes as the crypto markets experience increased trading volume, especially with Bitcoin inching closer to the $100,000 price mark.
Arkham Intelligence data shows that $2 billion in USDt was minted on the Ethereum blockchain, with an extra $1 billion minted on the Tron network in consecutive transactions. Since November 8, Tether has minted around $13 billion in USDt, as stated by Lookonchain. Tether CEO Paolo Ardoino stated that “Tether will need to reach hyper-productivity by 2025 to achieve our grand vision.”
Traditionally, traders and investors monitor stablecoin volume to gauge market interest in cryptocurrencies. The high volume of newly minted stablecoins typically signals a bullish market, while low volume suggests the opposite. This recent influx of USDt stablecoins comes amidst Bitcoin’s substantial price surge following the US elections, which saw the cryptocurrency reach an all-time high of over $99,000.
Investors frequently use stablecoins like USDt to enter or exit crypto positions, leading to increased demand during heightened trading activity. Bitcoin developer Adam Back even predicts that Bitcoin’s price could potentially hit $1 million with the establishment of a Bitcoin strategic reserve under the incoming Trump administration.
Notably, President-elect Trump has chosen crypto advocate Howard Lutnick, CEO of Cantor Fitzgerald, as the commerce secretary. Cantor Fitzgerald manages Tether’s US Treasury reserves that back the USDt stablecoin. Shortly after Lutnick’s appointment, Cantor Fitzgerald disclosed its acquisition of a 5% stake in Tether, valued at over $600 million.
As the crypto market continues to grow, industry experts like Kain Warwick from Infinex believe that it has four years to expand to a size where it becomes unstoppable. If you want to stay informed about upcoming investment opportunities and refine your trading strategies, subscribe to the Markets Outlook newsletter for exclusive insights every Monday. Stay ahead of the curve in the ever-evolving world of cryptocurrency.