The issuer of USDT, Tether, has been termed as the Fed of the crypto market.
Analyst Ali Martinez highlighted the correlation in USDT printing and Bitcoin price.
Over 1 billion new USDT tokens were printed for the Tron ecosystem.
Tether, the company behind the top stablecoin USDT, has minted 1 billion new tokens. Crypto analyst Ali Martinez suggests this could boost Bitcoin’s price.
Martinez draws a parallel between Tether and the Federal Reserve, noting that the crypto market often rallies after new USDT issuance. He also observed a surge in USDT minting during the recent market decline, suggesting this could foreshadow a potential market recovery.
#Tether is like the @federalreserve of #crypto! Every time more $USDT is minted, the market seems to climb higher. During the latest #Bitcoin correction, those #USDT printers were working overtime! pic.twitter.com/J8tLbjcMHe
— Ali (@ali_charts) August 20, 2024
On the same token, Whale Alert, an X account that tracks large whale movements, stated in a post that on August 20, Tether minted a massive 1 billion USDT tokens, roughly worth $1 billion. As per Martinez’s theory, this surge in printing could influence Bitcoin’ price action.
However, Tether CEO Paolo Ardoino, clarified that the newly minted $1 billion in USDT is to replenish inventory on the Tron network. So, in a way, this is a move by Tron to prepare for future surge in demand; Ardoino adding:
“Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.”
According to the data from CoinMarketCap, the USDT market capitalization stands at $117 billion, significantly higher than Circle USD’s (USDC) $35 billion market cap. Further, the trading volume of USDT surged 27.13% in the past 24 hours, currently standing above $50.5 billion. There are currently 116.99 billion USDT tokens circulating in supply with a total supply of 118.06 USDT.
Other stablecoins like USDC, DAI, FDUSD, PayPal’s PYUSD, and more have yet to catch up with the success achieved by USDT in such a short period. The status of Tether being the Federal Reserve of the crypto market remains unchallenged for now.
The post Tether Mints $1B USDT, Bitcoin Price Eyes Rally appeared first on Coin Edition.
