Tether minted $1 billion in USDT on the Tron network today, bringing its total minted tokens since January to 12 billion. This reflects growing demand for crypto and could signal bullishness.
Previously, major stablecoin issuances have led to a bullish cycle. With fresh inflows, the market sentiment is trending towards Greed, and Tether may facilitate more bullishness.
Tether’s Major USDT Minting
Tether, the world’s largest stablecoin network, has been steadily minting USDT tokens for the past few months. It minted 19 billion in a spree between November and December last year and added another billion less than a week later.
Today, Tether’s new action on Tron could have a powerful impact on the market.
This new USDT minting could have broad market implications for a few reasons. Major net issuances often reflect growing demand from institutions and OTC desks that need large blocks of stablecoins for cross-border settlements or build-up before buying digital assets.
For example, when it issued 1 billion USDT a little over a year ago, this caused Bitcoin’s price to spike.
In isolation, this single issuance could push the needle in a bullish direction. However, since Lookonchain data shows a pattern of major mintings, Tether could spur a lot of optimism.
Despite recently hitting a three-year low, the Crypto Fear and Greed Index has been trending upward. It’s currently in Neutral but briefly exhibited Greed yesterday.
In other words, the market is primed to accept a bullish signal, and Tether’s major minting may provide it.
Still, not every mint equates to immediate market deployment. True bullish pressure arrives only when those new USDT hit exchange wallets. Luckily, that seems like a very achievable goal.
Tether has a long history of using Tron’s blockchain for USDT mintings, and the two firms enjoy active cooperation today. Hopefully, this will help ensure these new tokens quickly reach exchanges and the broader market.
If so, Tether could aid a preexisting trend of fresh inflows to the crypto sector.
The post Tether’s $1 Billion USDT Mint Fuels Bull Run Optimism appeared first on BeInCrypto.
