Tether Mints Additional $3 Billion USDT Stablecoins, Tron Dominates Transactions

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As a seasoned researcher with years of experience in the crypto market, I find the recent surge in stablecoin inflows, particularly Tether (USDT), quite intriguing. Having closely observed market trends and their correlations since the 2017 bull run, I can’t help but notice the striking parallels between Trump’s victory in 2016 and this current spike in stablecoins.

In November, inflows of stablecoins in the cryptocurrency market noticeably increased after Donald Trump’s election win, coinciding with a broader market surge. Last Saturday, on November 23, Tether, a stablecoin issuer, minted an extra $3 billion worth of USDT tokens, which are pegged to the US dollar. These tokens were issued on both the Ethereum and Tron blockchain networks. This move comes as Bitcoin bulls have been attempting to drive the BTC price beyond $100K. Here’s a quick summary:

According to blockchain analysis firm Arkham Intelligence, a total of $2 billion worth of Tether’s digital currency, known as USDT, was generated on the Ethereum blockchain. Shortly afterward, another $1 billion of USDT was minted on the Tron blockchain network. Tether’s CEO, Paolo Ardoino, commented on this development.

“In 2025 Tether will need to reach hyper-productivity to accomplish our grand vision.”

According to the blockchain analysis platform Lookonchain, Tether has produced around $13 billion worth of USDT since November 8th. These stablecoin metrics are crucial in determining the current market value and future trends. A large amount of newly created stablecoins is generally interpreted as a positive sign (bullish). This suggests potential price increases, while a smaller creation indicates bearish activity and reduced market activity.

Furthermore, stablecoins such as Tether’s USDT function as bridges between traditional currencies (fiat) and cryptocurrencies. Users can utilize these stablecoins to buy digital assets (on-ramp), and later convert their crypto holdings back into cash (off-ramp). This heightened trading activity leads to an increase in demand for these stablecoins.

Tron Dominates Most of Tether’s USDT Transactions

As a diligent analyst, I’ve observed a robust alignment between Tron’s native cryptocurrency, TRX, and its application within stablecoin scenarios. Notably, the TRON blockchain handles an impressive 92% of all USDT transactions, underscoring its significant role in this market.

Despite hosting $60 billion in USDT, the market cap of $TRX stands at only $17 billion. Moreover, TRX-based USDT is becoming a popular choice for global trade, offering fast and low-cost stablecoin remittances. Speaking on this development, CryptoQuant CEO lauded Tron founder Justin Sun for his stablecoin move. He wrote:

“It’s time to reassess Justin Sun as an entrepreneur. He built the biggest global stablecoin trade remittance system. I’m not being paid to say this, nor do I own TRX, but I think that he has made a significant impact in the field of stablecoins and done something right.”

In 2024, Tether regularly released the USDT stablecoin. The market value of USDT increased significantly, rising from approximately $90 billion at the start of the year to around $132 billion currently. This increase demonstrates that USDT has played a significant role in providing liquidity, contributing to the upward trend in the 2024 cryptocurrency market.

In addition, Tether has entered the market for digital asset tokenization. Recently, they introduced a new platform called Hardon, designed to streamline the procedure for tokenizing assets. The objective of this platform is to make it straightforward for everyone to convert traditional or physical assets into digital tokens.

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2024-11-25 12:01