Adjust strategy, $USDT supply focus shifts to Ethereum
Tether, the world's largest stablecoin issuer, announced yesterday (11/6) that it will conduct a large-scale cross-chain exchange plan, planning to transfer more than $2 billion in $USDT from multiple blockchains to Ethereum. This move is to respond to changes in market demand and optimize the liquidity and asset management of $USDT.
The exchange involves the transfer of 1 billion $USDT from the TRON network to Ethereum, in addition to the transfer of 600 million $USDT from Avalanche's C-Chain network, 300 million from the NEAR protocol, and from CELO transferred 75 million coins, and transferred 60 million coins from EOS. The transfers were made to meet the needs of a large unnamed exchange to centralize $USDT assets in its cold wallets on the Ethereum network.
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Source: X Tether announced that it will conduct a large-scale cross-chain exchange plan
The stablecoin market is turbulent, and Tether responds positively
Rumors about Tether have been circulating recently, with media reports that the U.S. government is investigating Tether for suspected money laundering and sanctions violations, causing temporary fluctuations in the cryptocurrency market. In order to calm market concerns, Tether CEO Paolo Ardoino specifically clarified that the company’s asset reserves are solid, including approximately $100 billion in U.S. Treasury bonds, 82,000 Bitcoins (worth approximately $6.2 billion), and 48 tons of gold.
Tether’s chain exchange plan aims to improve the liquidity and market response speed of $USDT. Paolo Ardoino said that this move will not affect the total supply of $USDT, but will rebalance assets between different blockchains based on market demand. He emphasized that this is normal operating procedure and the company will make such adjustments regularly to optimize asset allocation.
Expert Interpretation: Market demand guides, Tether secures its position
Industry analysts pointed out that Tether’s large-scale chain exchange plan reflects the growth of market demand for $USDT on the Ethereum network. At the same time, it also showed a decrease in $USDT activity on other blockchains such as Avalanche, NEAR, CELO, and EOS. This could be due to reduced user activity on these blockchains, or exchanges and large holders looking to centralize assets to increase transaction efficiency.
Notably, $USDT remains the dominant player in the stablecoin market, with a market capitalization reaching $120 billion in October and trading activity remaining active. According to Chainalysis, many people now view stablecoins as a store of value, especially in countries with devalued national currencies.
The chain swap plan further solidifies Tether’s leading position in the cryptocurrency market and eases market concerns about its stability. Experts expect that as the market continues to develop, Tether will continue to adjust its asset allocation according to demand and remain sensitive and adaptable to the market.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
