Tether’s $1 Billion USDT Mint On Tron: What’s Fueling The Demand Surge?

Christian Encila

Last Updated: October 31, 2024 9:00 am

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

It’s been a busy week for Tether, as the company announced that it had authorized the minting of another 1 billion USDT tokens, pushing the total number of minted tokens to $33 billion in the last year. According to blockchain data, the additional tokens were minted on the Tron network and immediately sent to the company’s treasury wallet.

Whale Alert also confirmed the latest transaction last Tuesday at around 20:43 (UTC). The company’s latest replenishment order has sparked speculation of increasing demand and a potential price surge.

💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 1,000,000,000 #USDT (999,750,000 USD) minted at Tether Treasuryhttps://t.co/Vxw2yhfwTY

— Whale Alert (@whale_alert) October 29, 2024

Tether CEO Confirms New Mint, Saying It’s ‘Authorized But Not Issued’

Paolo Ardoino, Tether’s CEO, has confirmed this latest mint order, saying that the transaction was “authorized but not issued.” In blockchain parlance, the newly minted USDT tokens on the Tron network are not yet circulating but are still part of the company’s inventory. In short, these are just in storage, ready for the next batch of chain swaps and issuance requests.

The company officially disclosed the minting order on its transparency page. The newly minted tokens totaling $1.05 billion are listed under the “authorized but not issued” column of USDT.

USDT: Issuance At Tron Reaches $20 Billion

Tether is experiencing a surge in demand, reflected in the number of tokens minted on the Tron network last year. To date, as of October 29th, the Tron network had minted $20 billion in tokens. The Tron network occupies a special place in USDT’s ecosystem, accounting for more than half of the total USDT tokens in circulation.

BTCUSD trading at $72,275 on the daily chart: TradingView.com

According to the latest data available, as many as $120 billion Tether tokens are in circulation; more than 51% and about 61.7 billion are stored on the Tron network. Ethereum represents the second largest USDT reserve, which is about 45% of $55 billion. All in all, Tether still leads as a stablecoin issuer with a share of more than 67% of the overall stablecoins in circulation.

What’s Next For Tether?

The most recent mint order has raised questions on what the future holds for Tether’s USDT tokens. One of the assumptions is that the recent spike in bitcoin price had caused an increase in the stablecoins. “when they print, we go higher,” one user posted on social media, relating it to the minting of fresh tokens to meet future requests for the issuances.

Traditionally, the minting and deployment of stablecoins signal an increasing demand for crypto in a bullish market. An increase in stablecoin’s supply often pushes cryptos’ market prices. For example, when Tether introduced $3 billion worth of USDT tokens last August, Bitcoin’s price stabilized after dipping below the $50,000 level.

Featured image from Tether.io, chart from TradingView

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.