A group of analysts sharing blockchain data with their followers highlighted that Tether‘s treasury will provide short-term USDT liquidity for the Tron network. These analysts are known for informing their followers by tracking blockchain data for stablecoin supplies, token trading, and token transfers. According to the source, Tether has provided $1 billion worth of USDT tokens for the Tron network.
Why Was $1 Billion USDT Minted?
Blockchain data analyst platform WhaleAlert shared with its followers a $1 billion authorization. It was announced that this amount will be used as collateral to upgrade the Tron network. Paolo Ardoino, Tether’s Chief Technology Officer, responded to this claim without delay.
According to Ardoino, this situation is only a mere authorization and not an actual transfer. The allocated amount will be used as collateral for withdrawal requests from the Tron network and swaps for the chain. The statement made on Tether’s official website also confirmed Ardoino’s remarks:
“Tether limits the access to authorization private keys of signatories on Tether by creating authorized but unissued USDT, thereby reducing the exposure of users to security threats.”
Tether Market Cap Keeps Increasing
The amount of USDT issued on the Tron network reached an all-time high in 2023. There are 42.8 billion USDT in circulation on the network, while in the Ethereum ecosystem, this number is approximately 39 billion USDT. Tether’s CTO recently revealed similar USDT authorizations marked by blockchain data analysts and the issuance of USDT on Ethereum to support swaps took place in June 2023.
Approximately 16 billion USDT has been minted by Tether since January, and Tether’s market cap has exceeded $83 billion. With these figures, USDT continues to be the leading stablecoin pegged to the US dollar based on market value.
Furthermore, Circle’s stablecoin USDC, which had a market cap of $50 billion at the beginning of 2023, has recently decreased to $26 billion. Following the collapse of Silicon Valley Bank, which was one of the events that marked 2023, the market value of USDC continued to decline. During the collapse of Silicon Valley Bank, the institution had a reserve of $3.3 billion belonging to Circle.
