Tether, the leading issuer of stablecoins worldwide, has once again made headlines in the cryptocurrency market with a surprising move. According to Whale Alert, a monitoring system, Tether has recently issued an additional 1 billion USDT tokens on the Ethereum blockchain.
However, these newly minted tokens sometimes contribute to Tether’s market capitalization. Instead, they are strategically reserved for future issuance requests and on-chain interactions to enhance chain swap functionality.
This marks the second time in less than two months that Tether has issued a billion-dollar tranche of USDT coins, emphasizing their role in operational processes rather than their direct impact on market capitalization.
Tether’s continuous issuance of new USDT tokens has propelled its market value to a record high. Since the beginning of the year, Tether has already issued over $16 billion worth of new tokens, resulting in a staggering market value of more than $83.2 billion. This achievement solidifies Tether’s position in the cryptocurrency market and its role in the increased market share of Bitcoin.
With Bitcoin’s dominance surpassing 50% of the total crypto market valuation, it signals a resurgence of interest in the pioneering cryptocurrency. The decline in the altcoin market has coincided with this rise in Bitcoin’s dominance, as traders seek the liquidity and stability offered by stablecoins like Tether.
The recent price fluctuations of TrueUSD (TUSD), another dollar-denominated stablecoin, have potentially contributed to the growing dominance of Tether. Concerns about the stability of TUSD have led market participants to favour Tether as a more reliable and secure option.
As Tether continues to assert its influence in cryptocurrency, the market eagerly awaits further developments and how they will shape the future of stablecoins and the broader digital asset landscape.