Tether, the company that makes the popular USDT stablecoin, has once again given the go-ahead to create an amazing one billion USDT coins on the Tron blockchain. This release, which comes so soon after a similar one two days ago, shows how significant Tether’s business is and how much of an impact it has on the Bitcoin market.
At the time of publication, Tether had not officially commented on the most recent release of USDT tokens. However, CoinMarketCap data shows that USDT’s overall market value has reached an impressive $106.2 billion, solidifying its place as one of the most important stablecoins on the market. The DefiLlama dashboard also shows that USDT has a large 69.2% stake in the total market value, which is currently $153.2 billion.
Tether’s USDT Issuance Linked to Bitcoin Price Surge, Say Analysts
Professionals have been closely watching how Tether’s release of USDT tokens works, according to a well-known data tool called Lookin Chain. They say it’s cool that changes in the amount of USDT being made affect the price of Bitcoin (BTC), the most valuable cryptocurrency on the market. A lot more USDT tokens have been made since the end of 2022. About 30 billion more are being used now. Each time the price of Bitcoin has gone up, it has happened simultaneously.
There are a lot of stablecoins out there, but Tether’s funds are still being closely looked at and wondered about. A possible drop in the value of USDT has a lot of people scared. This could have significant impacts on the Bitcoin market. People who own Tether and the government are both scared of what would happen if its value dropped quickly. This is because it’s not clear how much money has been saved.
Some people have also said negative things about Tether, which has hurt its reputation. The Wall Street Journal says there are problems with how Tether works, and a new study backs this up. Some say the company gets into banks by making fraudulent companies and papers. Not as many people are sure that Tether will be around in the long term as a stablecoin source and that they understand how it works.
There are still concerns about Tether’s business plan and processes, even though the company keeps releasing more USDT tokens. Stablecoins are becoming increasingly important to the cryptocurrency market for protection and liquidity. Because of this, the next few months will still be very close for Tether and other major providers.
