In 2023, Tether minted 4 billion USDT, significantly expanding its stablecoin presence and planning innovative projects for 2024.
In the dynamic landscape of cryptocurrency, Tether, a leading stablecoin issuer, has significantly ramped up its minting activities. Over the past four weeks, the firm has created 4 billion USDT, a staggering figure that represents nearly 18% of all USDT issued in 2023. This development underscores Tether’s expanding footprint in the stablecoin market.
The minting process, executed on blockchain platforms like Tron and Ethereum, has been a consistent effort. Whale Alert, a renowned blockchain data provider, tracked these activities, revealing a pattern of substantial mintings. Specifically, Tether minted 1 billion USDT on the Tron blockchain on November 10. This was closely followed by another 1 billion USDT on Ethereum the previous day. These two instances were part of a larger sequence that included the issuance of 2 billion USDT across two separate instances in October and early November on the Tron blockchain.
Paolo Ardoino, Tether’s Chief Technology Officer and newly appointed CEO, shed light on these operations. He explained that the latest 1-billion-USDT transaction on the Tron network was essentially a replenishment of USDT inventory. This preparation is for upcoming issuance requests and chain swaps. According to Ardoino, these transactions are authorized but not yet issued, indicating a proactive approach to demand management.
Analysis of Tether’s 2023 USDT Issuance
Delving into the specifics, Whale Alert data indicates a total issuance of 22.75 billion USDT by Tether in 2023. Notably, the Tron blockchain has been a primary platform for these issuances, accounting for 57% (13 billion USDT) of the total. The Ethereum blockchain follows, with 9.75 billion USDT issued.
Tether’s minting activities haven’t been limited to the recent months. Earlier in March 2023, the firm minted 9 billion USDT, adding to the 3 billion minted in the preceding month. A similar pattern of significant minting activity was observed in mid-summer, with 3.75 billion USDT minted between June 12 and July 12.
Concurrently, Tether has also engaged in the burning of some USDT coins, indicating a balanced approach to supply management. For instance, 1.2 billion USDT were burned on the Tron blockchain in August, followed by the burning of 3.1 billion Tron USDT in June and 2 billion Ethereum USDT in February.
The crypto community has been vigilant about these developments, particularly in light of historical events. A notable instance was a significant USDT minting correlating with the shutdown of major banks like Silicon Valley Bank, Silvergate, and Signature Bank in March 2023. Despite rumors linking Tether to these banks, the firm has strongly denied any exposure to them.
Beyond minting and burning operations, Tether is also focusing on integrating new components into its ecosystem. Ardoino has teased the announcement of five innovative projects slated for 2024. These projects, according to him, have the potential to revolutionize certain centralized services in the Web2 space.
Tether’s aggressive strategy in minting USDT throughout 2023 highlights its commitment to staying ahead in the stablecoin market. With proactive inventory management and strategic project developments, Tether is poised to continue its influential role in the evolving world of cryptocurrency.