Digital

Tether’s USDT Supply Surges to 90 Billion Tokens Amid Market Optimism and Crackdown on Illicit Use

Tether, the issuer of the popular USDT stablecoin, has witnessed a surge in its supply, minting 7 billion USDT in the last three months. This move has propelled the total supply beyond 90 billion tokens, contributing to a 9% increase in market capitalization. The notable growth positions USDT as one of the fastest-growing stablecoins in the current cryptocurrency landscape.

Market Capitalization and Increased Confidence: As of the latest data, USDT’s market capitalization stands at $90.6 billion, reflecting a significant uptick. Observers interpret this substantial increase as a reflection of improved market conditions and heightened confidence among traders. USDT, being the largest dollar-pegged stablecoin, plays a pivotal role in facilitating cryptocurrency trading activities. Recent data indicates that it is one of the most utilized digital assets, with a trading volume approaching $30 billion over the past day.

The rising supply also signifies the entrance of new participants into the market and increased trading activities among existing users. TRON DAO notes that around 80% of active stablecoin addresses each week involve USDT.

Impact on Crypto Market and Price Surges: An increase in the supply of USDT traditionally correlates with price surges across the broader cryptocurrency market, influencing the values of major assets like Bitcoin and altcoins. This trend has been particularly notable amid market optimism surrounding the potential approval of a spot Bitcoin ETF. USDT’s growing supply indicates a strong demand for stablecoins and a preference for their use in trading activities.

Tether’s Wallet-Freezing Policy: In addition to the surge in USDT supply, Tether has taken proactive measures to address the illicit use of its stablecoin. On December 1, the company introduced a new voluntary wallet-freezing policy, allowing it to freeze wallets associated with individuals on the US Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list. This move aims to prevent potential misuse of USDT and aligns with Tether’s commitment to high safety standards.

Paolo Ardoino, Tether’s CEO, emphasized the company’s dedication to freezing both existing and newly added addresses on the SDN list. The initiative is designed to strengthen the positive use of stablecoin technology and foster a safer ecosystem for all users.

As Tether continues to play a crucial role in the crypto market, both in terms of facilitating trading activities and implementing measures for security and compliance, its actions are closely watched for their impact on the broader digital asset landscape. The surge in USDT supply and the introduction of new policies underscore the dynamic nature of stablecoins and their evolving role in the cryptocurrency ecosystem.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *