In this post:
- Paolo Ardoino, the CEO of Tether, affirms that 2 billion USDT would be minted in order to restock the Ethereum blockchain.
- According to Ardoino, the stockpile would be utilized for chain swaps and upcoming issue requests.
- Tether declared that it was collaborating with a top exchange to use chain swaps to combine more than 2 billion USDT on the Ethereum network.
Tether CEO Ardoino declared in a post on X on November 11 that Tether’s Treasury has generated 2B USDT on the Ethereum Network in order to restock its stock. According to Ardoino, the USDT was approved but not yet released; it would be utilized for chain swaps and issuance upon the subsequent request or requests. On November 6th, the stablecoin issuer said that it will work with a large third-party exchange to carry out a chain swap.
Without altering the overall quantity of USDT in circulation, Tether was transferring a portion of its USDT cold wallets from five distinct blockchains to USDT on the Ethereum blockchain.
Specifically, Tether combined 60 M USDT from Avalanche, 300 M from NEAR, 75 M from CELO, 600 M from Avalanche, and 1B USDT from Tron.
2B USDT minted on ETH amid Tether’s big shift to boost liquidity
The cryptocurrency world speculated after the Tether Treasury made 2 billion USDT on the Ethereum network. One of its tactics to increase liquidity on a platform with more Ethereum activity was the single-transaction reallocation of USDT from several blockchains.
The transaction was initially reported by Whale Alert, and Tether CEO Paolo Ardoino subsequently verified it. The consequences of this reallocation, which occurred at a time when bullish Bitcoin was soaring to consecutive record highs, were the subject of much conjecture among experts and cryptocurrency speculators.
In his explanation of the delayed minting notice on X, Ardoino stated that the chain swaps were intended to maximize liquidity rather than expand the token’s supply. The trades were made in an effort to satisfy the Ethereum Network’s increasing demand, he continued.
According to reports, this swap’s size was significant and represented general tendencies in the cryptocurrency industry.
Coingecko’s statistics shows that Tether’s liquidity skyrocketed to more than $160 billion.
Despite a little decline in USDT’s overall supply of 0.3 billion, Coingecko also shown that USDT remained the primary source of liquidity in both controlled and decentralized marketplaces. Nearly 85% of USDT’s entire supply was accessible for trade, according to the statistics. Growing trade volumes demonstrated how important USDT is to enabling high-volume trading.
Tether satisfies both present and future market demands
Even while Cirle’s USDC continued to gain traction, Coingecko’s data validated the USDT’s dominance as the top stablecoin.
Additionally, the research showed that the USDT’s integration into the Ethereum network puts Tether in a better position to handle changes in the market in the future.
According to Tether’s most recent report, the firm made $2.5 billion in Q3, demonstrating USDT’s strong financial position. The company’s pledge to keep over-collateralization with fiat or fiat-like assets was reinforced by its USDT reallocations.
Conversely, smaller blockchains would probably have less liquidity, which might have an effect on projects that rely on such ecosystems. Tether claims that because of peak-time network congestion, the concentration of USDT on the Ethereum blockchain may result in increased gas prices.
The USDT issuer further emphasized that the strategic realignment mirrored changing trends in the cryptocurrency industry and indicated that the enormous chain swaps were more than just a standard liquidity adjustment. Tether claims that rivals like USDC, which was expanding on specialty chains, have threatened USDT’s hegemony in some ecosystems.
