As a seasoned crypto investor with a knack for deciphering market trends, I must say that the recent surge in Tether’s USDt minting is nothing short of intriguing. The timing coincides with Bitcoin’s approach to the $100,000 mark, which has always been a catalyst for increased trading activity and, subsequently, stablecoin demand.
On November 23, Tether, a stablecoin issuer, produced an extra $3 billion worth of USDT tokens on both the Ethereum and Tron platforms. This move comes in response to escalating trading activity in the cryptocurrency market, with Bitcoin (BTC) being a significant contributor as it nears the $100,000 price point.
As an analyst, I’ve uncovered some intriguing figures: Approximately $2 billion worth of digital tokens were generated on the Ethereum blockchain, followed by another $1 billion on the Tron network in a series of swift transactions.
Based on Lookonchain’s data, Tether has produced around $13 billion in USDt since November 8, 2024. On November 24, Tether’s CEO, Paolo Ardoino, stated that in the year 2025, Tether must significantly increase its output to meet our ambitious goals.
Traders and investors frequently employ stablecoin volume as an indicator to estimate market interest within the cryptocurrency sector. A significant increase in the creation of new stablecoins is generally viewed positively by traders, suggesting potential increases in price activity, whereas a reduced volume suggests the opposite.
Political tailwinds and historic Bitcoin rally see Tether’s fortunes rise
In the two weeks after Donald Trump’s victory in the U.S. election on November 5th, the price of Bitcoin skyrocketed, rising from around $69,000 to a record high above $99,000.
Users often employ stablecoins such as USDT (Tether) as a bridge between traditional money (fiat) and cryptocurrency for both buying and selling digital assets. Consequently, higher trading activities lead to an increase in the demand for these stablecoins.
As per renowned Bitcoin developer and Cypherpunk Adam Back, the value of Bitcoin could potentially reach $1 million if a strategic Bitcoin reserve is set up during the Trump administration. This move might spark a competitive digital struggle among nations to secure Bitcoin, with some trying to get ahead of others.
On November 19th, Howard Luttick, CEO of Cantor Fitzgerald (a company managing the U.S. Treasury reserves for the USDt stablecoin) and a strong advocate for cryptocurrency, was chosen by President-elect Trump to serve as commerce secretary.
Five days following Lutnick’s cabinet appointment, Cantor Fitzgerald declared their acquisition of approximately 5% ownership in Tether, with an estimated value exceeding half a billion dollars.
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2024-11-24 23:30