Tether, a prominent stablecoin issuer, has been steadily increasing its supply of USDT tokens, with a remarkable surge in minting activities over the past month.
According to blockchain data provider Whale Alert, Tether minted an additional 1 billion USDT on the Tron blockchain on November 10.
This significant creation of USDT followed closely on the heels of another 1 billion USDT minted on the Ethereum blockchain on November 9.
Furthermore, Tether had previously issued 2 billion USDT in two separate transactions on the Tron blockchain on November 3 and October 19.
Paolo Ardoino, Tether’s Chief Technology Officer and new CEO, commented on this surge in USDT issuance, stating that the latest 1 billion USDT minted on the Tron network was intended to replenish their USDT inventory.
He emphasized that this was an authorized but not yet issued transaction, indicating it would be used for future issuance requests and chain swaps.
These recent USDT issuances constitute a significant portion of the total USDT supply for the year 2023.
Based on Whale Alert data, Tether’s total USDT minting for the year should reach 22.75 billion, with 57% (13 billion) issued on the Tron blockchain and the remaining 9.75 billion on the Ethereum blockchain.
Tether has been actively involved in minting new USDT stablecoins throughout the year.
In March 2023, they minted an astonishing 9 billion USDT, in addition to the 3 billion minted in the previous month. They also minted 3.75 billion USDT between June 12 and July 12.
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Simultaneously, Tether has engaged in burning USDT coins, reducing its supply.
Notably, on August 22, they burned 1.2 billion USDT on the Tron blockchain, following previous burns of 3.1 billion Tron-based USDT in June and 2 billion Ethereum-based USDT in February.
The cryptocurrency community has reacted swiftly to Tether’s recent minting activities, recalling the impact of previous aggressive USDT minting on the market.
Some users pointed out the correlation between substantial Tether issuance and significant market events, such as the disruptions in the banking sector in March 2023.
Tether has previously denied allegations of exposure to these events.
Additionally, Tether has been working on integrating new components into its ecosystem.
CEO Paolo Ardoino announced on Twitter that the company is preparing to unveil five new projects in 2024, some of which have the potential to disrupt popular Web2 centralized services.
As of now, Tether has not responded to requests for comment from Cointelegraph.
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