Crypto News – How Will the Crypto Market Respond to Tether Treasury Minting?
Crypto News – Tether Treasury created one billion USDT on May 16, according to on-chain statistics. Many believe that the significant USDT issuance could have an effect on cryptocurrency market movements, given Tether’s dominant position in 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 1 billion USDT had been added to the Tron Network’s inventory.
Meaning that this amount will be used as inventory for next period issuance requests and chain swaps,
Ardoino
The Relationship Between USDT Supply and Bitcoin Price
On April 16, a liquidity drain occurred in the market, marking the final time Tether created USDT. Tether Treasury has made 31 billion USDT in the last year, according to a study from the on-chain analytics platform Lookonchain. On the Ethereum and TRON blockchains, it generated those sums.
Tether issued these USDT at the same time that the price of Bitcoin (BTC) dropped to around $64,600. The price of Bitcoin has generally increased in tandem with each rise in the USDT supply since the end of 2022. The USDT supply and the movement of the price of Bitcoin are highly correlated, according to data from CryptoQuant, which causes the price of Bitcoin to rise in volume and experience a dynamic environment.
FAQ
What is Token mint?
To mint fresh tokens and put them into circulation is to do so. Smart contracts produce tokens and store ownership information about them.
What is the USDT?
One cryptocurrency that is referred to as a stablecoin and is intended to always have a constant price is Tether (USDT). Tether Limited developed the USDT cryptocurrency to serve as the Digital Dollar of the internet.
What is the Bitcoin Price Now?
The Bitcoin price is $66,334 at the time of writing, according to CoinMarketCap.
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