Tether, the company behind the largest stablecoin USDT, has once again minted a substantial amount of its digital dollar-pegged asset on the Tron network. According to blockchain data analytics firm Lookonchain, Tether authorized the issuance of 1 billion USDT on the Tron blockchain, just two days after a similar release of the same amount on April 2. The latest minting of 1 billion USDT comes as no surprise, given Tether’s consistent expansion of its stablecoin supply. At the time of writing, Tether has not provided an official statement or explanation for the recent USDT issuance.
The USDT stablecoin continues to dominate the stablecoin market, with a market capitalization of $106.2 billion, according to CoinMarketCap data. DefiLlama’s dashboard also highlights USDT’s market dominance, accounting for 69.2% of the total stablecoin market capitalization of $153.2 billion. Analysts at CryptoQuant have observed a correlation between the circulating supply of USDT and the price of Bitcoin (BTC). Since the end of 2022, the circulating supply of USDT has increased by approximately 30 billion, with each increase in supply coinciding with the beginning of a rise in the price of the leading cryptocurrency.
While Tether remains the dominant stablecoin issuer in the market, concerns about the transparency of its reserves have persisted. Critics have raised questions about the potential for USDT to depreciate, which could have a substantial negative impact on the broader cryptocurrency market. Tether faced scrutiny after a Wall Street Journal investigation alleged that its partners used fake documents and shell companies to gain access to the banking system. These allegations have fueled ongoing debates about the need for greater transparency and regulatory oversight in the stablecoin industry.
