Tether Mints 1 Billion USDT on Ethereum Network: What It Means for The Crypto Market?

Key Insights:

• Tether adds 1 billion USDT to the market through a recent mint on Ethereum.
• Assessing the potential implications for the market as stablecoin regulation makes strides.
• USDT celebrates new milestone on Korean crypto exchange Upbit.

Stablecoin issuer Tether has reportedly minted a fresh batch of its USDT stablecoin on the Ethereum network. The stablecoin which is currently the largest in its category in terms of marketcap continues to assert its dominance especially with this latest mint.

Preliminary reports revealed that Tether minted 1 billion USDT this week. The newly minted coins just pushed USDT’s marketcap to $156 billion. Tether has so far added about 4.26 billion USDT to its marketcap in the last 30 days.

Also, the newly minted coins were added through the Ethereum network. The development comes just as the stablecoin segment has been gaining traction especially with the U.S advancing towards regulation.

Why the latest Tether USDT mint was significant for the market

Tether has been moving rapidly in the market with its stablecoin minting. This could signal that the company anticipates a heavy demand wave for the stablecoin on the ERC20 ecosystem.

Some analysts suggested that the move may have been aimed at maintaining a dominant lead in the stablecoin segment. However, there were likely other motives given that USDT already had a solid lead against the competition in terms of dominance.

Tether’s USDT stablecoin still held solid lead in the stablecoin segment, accounting for over 62% of the total stablecoin marketcap. Circle’s USDC accounted for just over 24%, which meant it was nowhere near giving USDT a run for its money.

As far as chain dominance was concerned, Tron still had the largest share of USDT at over 48%, while Ethereum was second at just over 39%.

Based on the recent push towards stableoin adoption, Tether likely foresees a surge in demand for stablecoins courtesy of the upcoming regulation. We previously noted that the stablecoin bill underscored the U.S government’s efforts aimed at using stablecoins to strengthen the dollar’s global dominance.

It was also possible that the recently minted USDT coins were a sign of things to come. A surge in stablecoin liquidity has traditionally heralded a demand surge for Bitcoin and altcoins. A Bitcoin rally was observed the last time that Tether minted USDT.

South Korea’s Upbit exchange adds USDT to Aptos

The latest Tether-related news also revealed that the stablecoin issuer was extending its roots into the Asian market. Recent reports revealed that Upbit, a crypto exchange based in South Korea now supports USDT deposits and withdrawals through Aptos.

The move could have multiple potential implications, with the first one being the obvious liquidity boost.  In addition, the native support for USDT on Aptos was expected to deliver more efficiency by offsetting the heavy dependence on cross-chain bridges.

In addition, the support for USDT on Aptos means Upbit may tap into more transaction efficiency. Most of the USDT transactions on the exchange have been taking place through the Ethereum network which does not exactly have the best reputation in terms of speed and cost.

Aptos which has a cheaper and faster transactions is expected to offer faster and cheaper USDT transactions on the South Korean exchange.

Another major factor to consider as far as USDT was concerned would be the potential implications especially with stablecoins going mainstream. It is possible that Tether will continue to push for native USDT availability across other major networks and exchanges.

The incentive for this push would be to achieve more exposure and demand across multiple markets outside the U.S. Afterall, if USDT is heavily tied to U.S treasuries, then demand for the stablecoin could further strengthen U.S dollar dominance.

The surging USDT stablecoin marketcap aligns with the plan to expand the stablecoin’ growth outside the U.S.

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