Originally published on: November 24, 2024
In a frenzy of activity on Nov. 23, stablecoin issuer Tether minted a whopping $3 billion in USDt tokens across the Ethereum and Tron networks. This surge in Tether’s minting activity coincided with a significant spike in trading volume within the crypto markets, driven largely by Bitcoin’s climb toward the $100,000 mark.
Data from Arkham Intelligence showed that $2 billion in USDt was minted on the Ethereum blockchain, with an additional $1 billion USDt minted on the Tron network, all within back-to-back transactions. Lookonchain data indicated that Tether has minted around $13 billion USDt since Nov. 8. Tether CEO Paolo Ardoino even hinted at the company’s ambitious plans for “hyper-productivity” by 2025.
Traders and investors closely monitor stablecoin volume as an indicator of market interest. A surge in freshly minted stablecoins is often seen as a bullish signal for price movements, while low volume suggests the opposite. With Tether’s recent minting spree, excitement in the crypto space is palpable.
The surge in Tether’s minting activity coincided with Bitcoin’s remarkable price surge following the U.S. elections, with the cryptocurrency skyrocketing from $69,000 to over $99,000 in just two weeks. This upward momentum has spurred a surge in trading activity, driving demand for stablecoins like Tether’s USDt.
Amidst these developments, some speculate on the potential for Bitcoin to hit $1 million, especially if a strategic reserve is established under the incoming administration. This could spark a digital arms race among nation-states to acquire Bitcoin, reshaping the global financial landscape.
President-elect Trump’s recent appointment of Howard Lutnick as commerce secretary has further fueled speculation, particularly as Cantor Fitzgerald, under his leadership, recently acquired a 5% stake in Tether, worth over $600 million. These moves underscore the growing influence and interplay between traditional finance and the booming crypto market.
As the crypto market continues to evolve and expand, the possibilities for growth are immense. The surge in Tether’s minting activity is just one indicator of the vibrant and dynamic landscape of digital assets. Subscribe to our newsletter for more insights and updates to stay ahead of the curve.
