On Monday, stablecoin issuer and Bitcoin maximalist Tether injected a fresh $1 billion into the crypto market. The transaction, confirmed by Tether’s CEO, Paulo Ardoino, was an inventory replenishment on the Tron Network.
In usual fashion, Ardoino stated, “PSA: 1B USDT inventory replenish on Tron Network. Note this is an authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests and chain swaps.”
Tether mints are usually to meet growing demands for the stablecoin, representing bullish momentum for cryptocurrency. Notably, the stablecoin issuer has minted $1 billion USDT in the Tron Network for the second month running, a sign of improved liquidity.
Tether Nears $100 Billion Market Cap.
The mint on Monday has taken Tether’s market cap to $96 billion, just $4 billion shy of the golden $100 billion trademark. The stablecoin issuer is on track to becoming the first stablecoin to reach that milestone.
Only a few cryptocurrencies have reached such heights, and just two have maintained a market cap above $100 billion. Bitcoin, Ethereum, XRP, and BNB are the only four to ever hit that milestone, with only the two big boys, Bitcoin and Ethereum, still keeping a market cap above $100 billion to date.
Bullish?
A Monday report from on-chain analytics firm CryptoQuant showed a bullish correlation between USDT supply and Bitcoin price. The analysis revealed that Bitcoin would react positively to the increasing supply of stablecoin USDT.
“Since the end of 2022, the circulating supply of USDT has increased by around 30B. Each increase in supply has traditionally positively affected the development of the BTC price,” the report stated.
With selling pressure from Grayscale reducing, the persistent mint from Tether might signal funds are beginning to flow into the crypto market. ETF issuers like BlackRock and Fidelity already hold more than $1 billion worth of Bitcoin in less than two weeks of launch, a sign of what to expect from them in the foreseeable future.
This news is republished from another source.
