• Tether minted $2B USDT on Ethereum, followed by a strategic $1.85B injection into top exchanges.
• Ethereum now holds $56.2B USDT post-mint, closely trailing Tron’s $61.2B in circulation.
• Tether’s strategic chain swaps in 2024 aim to optimize liquidity, moving funds across multiple blockchains.

Tether recently conducted a on-chain operation, minting $2 billion USDT on Ethereum and creating $1 billion worth of USDT on Tron. The operation involved executing a crypto exchange tie-up to rebalance USDT across various blockchains to meet the strongest demand. A chain swap is a method where USDT is transferred from less-used blockchains to Tether’s Treasury, then reminted on Ethereum. This strategic maneuver does not increase the overall supply of USDT but optimizes its distribution.

The reallocation involves transferring 1 billion USDT from Tron, 600 million USDT from Avalanche, 300 million USDT from Near Protocol, and smaller amounts from CELO and EOS networks. This rebalancing is driven by increased demand for Ethereum-based USDT, highlighting Ethereum’s growing prominence in the crypto market. Tether’s transparency page shows Tron holds the largest amount of USDT in circulation at $61.2 billion. While Ethereum is at $56.2 billion.

Market Impact and Tether’s Profit Surge

Following the chain swap, Tether injected approximately 1.85 billion USDT into several exchanges. Distributing the largest share to Binance and smaller portions to Coinbase, OKX, and Kraken. This injection corresponds with a surge in USDT trading volumes, which recently exceeded the stablecoin’s total circulating supply. The considerable trading volume of $129 billion underscores the central role USDT plays in the crypto economy.

This strategic deployment of USDT coincides with Tether reporting a substantial profit of $2.5 billion in Q3 2024, with a total profit of $7.7 billion in the year’s first nine months. These figures testify to the issuer’s robust financial health and operational success. The increased profits and strategic chain swaps indicate Tether’s proactive management in responding to market dynamics and user demand across various blockchains.

Ensuring Stability and Confidence

Tether’s approach to managing its USDT supply involves meticulous adjustments to meet market demands while ensuring the stability of its token supply across all networks. Tether enhances USDT’s liquidity and global availability through regular chain swaps, ensuring its usability for global users. This practice supports Tether’s position as a pivotal entity in the cryptocurrency landscape, facilitating efficient and flexible digital asset transactions.

The post Tether Minted $2 Billion USDT on Ethereum Amid Growing Market Demand appeared first on Crypto News Land.

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