Logll Tech News — Tether Treasury has recently announced the issuance of 1 billion USDT (equivalent to $1,000,485,000) on the Tron network, marking another significant milestone for the stablecoin giant.
- This article explores the details of Tether’s latest minting, its impact on market capitalization, and the role of chain swaps in the crypto ecosystem.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 1,000,000,000 #USDT (1,008,235,000 USD) minted at Tether Treasuryhttps://t.co/EMkzybOauN
— Whale Alert (@whale_alert) June 12, 2023
Tether’s Inventory Replenish Process on Ethereum
Tether CTO’s Insight
Paolo Ardoino, Tether’s Chief Technology Officer (CTO), shed light on the motivation behind the recent minting of USDT on Tron. Ardoino clarified that this issuance falls under Tether’s “inventory replenish” process on the Ethereum blockchain. It’s important to note that the newly minted USDT will not affect the overall market capitalization, as it is categorized as an “authorized but not issued transaction.”
Future Issuance and Chain Swaps
Moreover, Ardoino emphasized that the freshly minted USDT serves as inventory for future issuance requests and chain swaps. Chain swaps enable traders to transfer their digital assets across different blockchains, expanding their accessibility and utility. This capability empowers traders to utilize their digital assets on multiple blockchain networks.
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USDT’s Market Dominance and USDC’s Shrinking Value
USDT’s Market Growth
Coingecko’s data reveals that USDT’s market value has surged by $2.6 billion in the past three months, demonstrating its strong performance. Meanwhile, its primary competitor, USDC, has experienced a decline of $4.6 billion during the same period.
Market Analysis by Santiment
Santiment, a leading market analysis firm, advises traders to closely monitor the supply of tether (USDT) and US dollar coin (USDC) on exchanges. Fluctuations in the supply of these stablecoins can potentially serve as indicators of price movements in the cryptocurrency market. These variations may signify significant developments or upcoming events, providing valuable insights for traders.
Tether’s Market Dominance
As of the latest data, USDT claims a dominant position in the stablecoin market with 65% of the total market value, while USDC holds a 21.4% share. This market dominance further solidifies Tether’s position as a leading stablecoin and reinforces its influence in the crypto industry.
Concerns and Clarifications Regarding USDT Trading on Binance.US
Paolo Ardoino Addresses Deviation from Dollar Peg
On July 10, Paolo Ardoino took to Twitter to address concerns surrounding USDT trading on Binance.US. He acknowledged that there is a deviation from the dollar peg exclusive to the Binance.US platform. This discrepancy is reflected in an -8% spread that affects all cryptocurrencies on the exchange. Ardoino attributed this situation to the ongoing legal challenges faced by Binance.US, which may have reduced market makers’ participation in arbitrage activities.
Distinction Between Binance.US and Binance Global
Importantly, it is worth noting that on Binance Global, USDT is trading with a mere one basis point above the dollar, highlighting the distinction between the two platforms. This discrepancy underscores the impact of the legal challenges faced by Binance.US and the consequential effects on market dynamics.
I saw few accounts overnight suggesting that since USDt is trading below par on https://t.co/Zy5QwYdrr6 then USDt is depegging...
— Paolo Ardoino 🍐 (@paoloardoino) July 10, 2023
Here are the facts
- https://t.co/Zy5QwYdrr6 is going through some legal challenges so it probably doesn't have many market makers willing to… pic.twitter.com/VnVSYA7tfI
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Conclusion
Tether’s recent issuance of 1 billion USDT on the Tron network signifies another milestone for the stablecoin giant. The inventory replenish process on Ethereum and the potential for future issuance and chain swaps emphasize Tether’s commitment to expanding its ecosystem. Additionally, USDT’s market dominance and USDC’s declining value demonstrate Tether’s sustained influence in the stablecoin market. Traders are advised to keep a close watch on the supply of stablecoins as it can offer insights into potential market trends and events. Finally, clarifications regarding USDT trading on Binance.US shed light on the challenges faced by the exchange and its impact on market dynamics.