The stablecoin giant continues to expand, with $USDT's market capitalization rising.
In the highly volatile cryptocurrency market, Tether once again demonstrates its strong position as a stablecoin leader. According to the latest data provided by Lookonchain, on November 29, Tether minted another $1 billion of $USDT, while on November 19, the company had already minted $3 billion of tokens. Since November 8, the total newly minted $USDT has reached $14 billion.
Source: Lookonchain Tether minted $1 billion of $USDT on November 29.
This move reveals Tether's significant position in the stablecoin market. A report by CCData (Stablecoins & CBDCs Report) further corroborates this, stating that $USDT currently dominates the stablecoin ecosystem with a market share of about 69%. In the third quarter of 2024, Tether generated an astonishing $2.5 billion in revenue for the network, further solidifying its strategic importance in the cryptocurrency market.
Tether's CEO Paolo Ardoino provided a detailed explanation of 'token issuance' back in August. He emphasized that these newly minted tokens are only in an authorized state and have not been officially issued, primarily used for future issuance requests and inter-chain exchanges. Ardoino believes that this approach allows Tether to ensure sufficient market liquidity and provide greater flexibility for traders.
Source: X Tether CEO Paolo Ardoino explains that these newly minted tokens are currently only in an authorized state and have not been officially issued.
The market interprets the new minting behavior positively, with investor attitudes being optimistic.
Tether's large-scale token issuance has attracted widespread attention and in-depth analysis in the cryptocurrency market. Research from blockchain research labs provides deep insights into this phenomenon. The study shows that each new minting of $USDT valued at $1 billion has a significant effect on Bitcoin's price: within 5 minutes of the minting, Bitcoin's price typically rises by about 0.4%, and within 30 minutes, the increase can be even more substantial, reaching about 0.8%.
According to a research report by Aman Saggu, investors generally interpret the new minting of $USDT as a positive signal of increased market liquidity and rising demand. The logic behind this interpretation is that when the market needs more liquidity, Tether can timely provide additional stablecoin supply. Notably, the market does not view the reduction of $USDT as negative news, but rather generates a 'fear of missing out (FOMO)' mentality due to market sentiment and a bullish atmosphere.
Data from Arkham Intelligence's on-chain analysis shows that in the past, newly minted $USDT from Tether would first be sent to its multi-signature wallet and then transferred to the company's inventory. It is worth mentioning that these transactions feature zero fees, further highlighting Tether's strategic flexibility in the cryptocurrency market.
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Tether steadily expands, reaching a new high in market capitalization.
The latest data shows that Tether's market capitalization has soared to an astonishing $133.56 billion, with a 24-hour trading volume reaching $102.6 billion. This marks the company's 13th consecutive month of market cap growth, fully reflecting its sustained competitiveness and influence in the stablecoin market.
Source: Arkham Intelligence Tether's market capitalization has soared to an astonishing $133.56 billion.
In the cryptocurrency industry, traders and investors often view the supply of stablecoins as a key indicator for assessing market sentiment and investment interest. An increase in stablecoin supply is typically interpreted as a bullish signal for the market; conversely, a decrease in supply may suggest a decline in investment interest. In this context, Tether's ongoing strategy of increasing $USDT issuance not only solidifies its market position but also provides stable liquidity support for the cryptocurrency ecosystem.
Currently, the market is closely watching Tether's next moves. As the leader in the stablecoin industry, every action Tether takes in the cryptocurrency market is highly scrutinized. Despite the rapidly changing market environment, Tether seems to have found a balance to maintain stability and competitiveness in this dynamic ecosystem.
[Disclaimer] The market carries risks, and investment should be approached with caution. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Invest at your own risk.
'Market demand surges! Tether issued $14 billion in November, can it maintain its dominance in stablecoins?' This article was first published on 'Crypto City'.
