Tether Issues an Additional $5 Billion USDT in the Past Week
Taking advantage of the declining market caps of rival stablecoins, Tether has surged ahead by increasing its total supply by $5 billion USDT over the past seven days.
Tether to Report with Auditor Soon
Tether Mints an Additional $5 Billion USDT in the Past Week
According to on-chain data, on the evening of March 21, Tether minted an additional $1 billion USDT on the TRON network. Surprisingly, within the past week alone, the giant has minted a total of $5 billion USDT across both TRON and Ethereum blockchains.
This move has increased the total supply of USDT by 10% over the last 30 days, reaching $76.97 billion, and simultaneously raised its market dominance in the stablecoin sector to 58%.
Market Cap Fluctuations of USDT in the Last 7 Days, Screenshot from CoinMarketCap at 03:00 PM on March 22, 2023
These large-scale minting activities come amid an increasingly fierce stablecoin battle. BUSD has dropped out of the top 10 by market cap and has been effectively banned from further issuance by U.S. authorities. USDC has also faced difficulties, with $3.3 billion in assets held at Silicon Valley Bank, though these assets have since been restored. Nonetheless, USDC experienced significant de-pegging and has seen many crypto investors turn away. Both stablecoins have seen supply decreases of 38% and 15%, respectively, over the past 30 days.
In this chaotic environment, USDT has become a “safe haven” for investors. According to BDO’s audit report for Q4 2022, Tether has reserves exceeding $960 million.
#BUSD, the most fiat-backed stablecoin, audited by big audit firms, regulated by the NYDFS, was forced to wind down (no new minting).
— CZ 🔶 BNB (@cz_binance) March 21, 2023
USDC is shrinking in market cap too due to bank closures.
USDT is growing. pic.twitter.com/q5OYQdpAtW
Learn More: What is USDT?
In line with recent developments, Binance CEO Changpeng Zhao has also provided updates on the stablecoin market:
“BUSD, a stablecoin largely backed by fiat and audited by major firms, regulated by NYDFS, has been forced to cease operations.
USDC’s market cap is also decreasing due to the bank closure.
USDT continues to grow.”
Binance itself has also adapted to the situation. As reported by Coin68, Binance’s SAFU (Secure Asset Fund for Users) has converted its entire BUSD holdings into $100 million USDT and $100 million TUSD to distance itself from BUSD, the stablecoin branded by the exchange.
