Tether Mining Adds 1 Billion USDT Amid Continue To Grow

Key Points:

• Tether minted another one billion USDT on the Ethereum blockchain.
• Currently, the market dominance of Tether’s stablecoin is undisputed.
• USDT fell after the banking crisis in early March, but compared to other competitors, it still shows its potential.

USDT is regaining its dominance in the stablecoin race with an increase in circulating supply.

Tether, a stablecoin issuer, produced one billion USDT tokens on the Ethereum network. Tether CTO Paolo Ardoino describes the minting as an inventory replenish.

He went on to say that it was an approved but not issued transaction, which means that it would be utilized as inventory for the next phase of issuing requests and chain swaps.

The most prominent stablecoin in the crypto market is USDT, which is tied to the US dollar 1:1. It’s widely used to make trading on major exchanges that don’t take fiat currency easier.

USDT is a one-of-a-kind example of a fiat-collateralized stable coin that is frequently utilized in the cryptocurrency world. Fiat-collateralized stablecoins, unlike other forms of stablecoins, keep a reserve of fiat money (or currencies) such as the US dollar to safeguard the stablecoin’s value. Fiat collateral is held in reserve by the central issuer and must correspond to the number of associated stablecoins in circulation.

Meanwhile, its rival, USDC is currently struggling after the crisis that took place at the beginning of last month, although its $1 peg has been secured, the trading volume has dropped significantly.

Circle, the issuer of the stablecoin USDC, lost its $1.00 peg to the US dollar a day after the west-coast bank Silicon Valley Bank (SVB) was placed into federal receivership and both deposits and withdrawals ceased, prompting fears of a run on the stablecoin similar to what happened during the wind-down of UST following its de-pegging from Terra Luna.

The USDT presently controls 7.1% of the market, a decrease from 8.2% last month. Yet, given the present market’s orientation, where its other rivals are nowhere to be found, its position is secure. Others say that the supply of USDT has affected the direction of the Bitcoin price or the crypto market as a whole.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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