Tether has mined another $1 billion in USDT, this time on the TRON network. Stablecoin issuers have mined nearly $4 billion in the past week.
Tether has mined $1 billion in USDT on the TRON network, following billions of dollars in USDT that have been mined over the past week. In the past seven days, Tether has mined a total of $4 billion in USDT.
tether printer goes brr
Heavy mining will test the largest stablecoin in the market, which is often tested for its reserves. Tether has stated that its supply is backed by its reserves, with accounting firm BDO recently confirming that it previously had more than $960 million in reserves.
The firm increased the percentage of its reserves held in Treasury Bills to 58%.
The minting comes as competition in the stablecoin sector is on the rise, with Tether attempting to lure investors away from other stablecoins. Tether is the dominant stablecoin issuer in the market, and it looks like that won’t be changing anytime soon. However, some still continue to worry about the possible fall of stablecoins like USDT, which would have a huge impact on the market.
Tether has recently faced more scrutiny following a Wall Street Journal investigation that claimed its partners used fraudulent documents to give the company access to bank accounts. The report states that Tether used shell companies to access the banking system in 2018.
Ethereum Poised To Profit From Tether Mints
Tether has benefited from the issues faced by USDC, with increased demand for USDT to mint. This is one of the reasons why analysts believe that it could remain a major stablecoin. The dominance is expected to continue in the medium term future.
The increased demand for USDT could positively affect the DeFi market, as USDT is one of the popular cryptocurrencies in that sector. Therefore, there is a possibility that USDT minting could create a positive cascading effect for Ethereum and its ecosystem.
USDT dominance reaches 18-month high
Tether’s stablecoin dominance is also at its highest point in 18 months, which is another strong sign for its future. In terms of stablecoin market share, Tether dominates by far and wide with around 60% share. USDC is up around 27.5%.
Furthermore, the fact that the USDC-issuing Circle was about $3.3 billion Silicon Valley Bank has contributed to the return of stablecoins. In any case, it is worth keeping an eye on the stablecoin market. It will undoubtedly undergo some changes as the year progresses.
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.