A significant name in the stablecoin market, Tether, has put out $1 billion worth of new USDT tokens on the Tron blockchain. Since there were no fees for the July 24 deal, this is usually seen as a good sign for the market.
Arkham, a blockchain analytics firm, pointed out this minting activity. It comes at a time when the total market cap for stablecoins is growing.Ever since June 29, there have been more stablecoins in circulation than there were before.
A member of the Nansen team says that this trend has been steadily getting stronger. Nansen experts warn, though, that this growth does not always mean that prices are about to go up. “Given the various factors at play, it’s challenging to justify this as a standalone indicator of a forthcoming price hike,” said a Nansen analyst.
Tether’s $1B USDT Mint on Tron
Nansen lists a number of things that need to be thought about in order to fully grasp how the market works as a whole. Both on-chain and off-chain data are used. On-chain data includes things like decentralized exchange volumes and address statistics.
Off-chain data includes things like exchange-traded fund (ETF) flows, macroeconomic outlooks, and monetary policies. Even though the stablecoin market cap went over $160 million after staying the same for a while, the crypto market still needs more proof before it can confidently predict that prices will go up.
The fact that more of certain stablecoins are being used shows that user demand is growing. According to Nansen’s data, the rise in stablecoin supply is due to USDC from Circle, USDT from Tether, DAI from Maker, PYUSD from Paxos, and USDD. The market is growing because of these different stablecoins, which shows that users have strong and varied demand.
People think it’s a good sign that Tron can mint $1 billion worth of new Tether tokens without charging any fees, but the major picture of the market is still complicated.
Analysts say that a number of things, including both on-chain and off-chain indicators, must come together to confirm that cryptocurrency prices are going up. Even though the current trends are good, they show that the market still has a ways to go before prices start to rise significantly and stay high.
