Leading stablecoin issuer Tether has channeled 1.25 billion USDT into centralized exchanges in the last 24 hours as demand for digital assets continues to rise. The ongoing crypto market resurgence has created a rising demand for stablecoins that contribute significantly to the growing crypto ecosystem.
The USDT stablecoin issuer has again appeared on the radar for channeling 1.25 billion USDT from Tether Treasury to centralized exchanges. The flow of funds is attributed to the rising demand for cryptocurrencies following the recent digital asset frenzy that sent crypto prices soaring.
According to data from blockchain analytics platform Lookonchain, the stablecoins were channeled to centralized exchanges such as Kraken and Bitfinex.
Tether mints 2 billion USDT that flowed into centralized exchanges
Huge amounts of funds are being pumped into the crypto market!
In the past 24 hours, ~1.25B $USDT flowed from the #TetherTreasury to exchanges! pic.twitter.com/R7Roi87lca
— Lookonchain (@lookonchain) November 13, 2024
The transactions are part of a series of recent actions by Tether. Lookonchain reported that Tether minted 2 billion USDT, causing BTC to soar to an all-time high of $89,500 on November 10th.
The blockchain analytics platform also noted that on November 11th, the stablecoin issuer minted another 2 billion USDT, which was also pushed to centralized exchanges.
The USDT issuer also processed another 2 billion USDT mint on the Ethereum network. However, this mint was specifically conducted for inventory replenishment on the Ethereum network. Tether had previously announced coordination with a third-party exchange to perform a chain swap to convert some of their USDT from different blockchains to USDT on Ethereum. Tether emphasized that the USDT supply will not change during the process.
According to Tether’s announcement, the chain swap process will swap 1 billion USDT on TRC20, 600 million USDT on AVAX (C), 300 million USDT on NEAR, 75 million USDT on CELO, and 60 million USDT on EOS to the Ethereum network. Tether’s CEO, Paolo Ardoino, confirmed the mint and said the amount will be used as inventory for the next period of issuance and chain swaps.
According to data from CoinMarketCap, Tether is the largest stablecoin issuer, with a market cap of $125 billion and a 24-hour trading volume of $251 billion at the time of this publication. Stablecoin issuer Circle follows Tether with a market cap of $36 billion and $19 billion traded in the last 24 hours. DAI trails in third with a market cap of $5 billion and $236 million traded in the previous 24 hours.
The majority of USDT supply is minted on the Tron network
According to Tether’s transparency page, most stablecoins have been issued on the Tron network. Tron’s total authorized USDT supply is $61.7 billion, and the authorized but not issued supply is $982 million, bringing the net USDT circulation to $60 billion.
Ethereum follows Tron closely behind with the second-largest USDT supply. Tether has minted a total authorized USDT supply of $60 billion and $191 million unauthorized but not issued USDT. The total USDT in circulation on Ethereum is $60.7 billion.
The USDT issuer has also recently undertaken more developments. The company recently unveiled a Wallet Development Kit (WDK) for businesses and developers. The open-source modular software development kit will allow users to integrate non-custodial wallets and user experiences for Bitcoin and USDT in any device, application, and website. The kit offers a full self-custodial toolkit to users, allowing developers to build advanced desktop, mobile, and wallet experiences.