The Tether Treasury has minted $540 million of its US dollar-backed stablecoin in the last three days, as Bitcoin’s price rallied above $11,000.
According to Whale Alert, $300 million was created today on the Tron network, after two previous mints of $120 million on Ethereum in the past three days.
300,000,000 #USDT (299,651,480 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) July 29, 2020
Crypto exchange Bitfinex and Tether CTO Paolo Ardoino explained on Twitter that the transactions were to replenish the inventory, in preparation for more demand.
“Note this is a (sic) authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests,” he said.
Tether is the most commonly used stablecoin with a market cap of $10 billion. Its value is pegged to the US dollar, enabling it to avoid the price fluctuations typical of most cryptocurrencies.
PSA: 300M USDt inventory replenish on Tron Network. Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.https://t.co/xw0crkzn3d
— Paolo Ardoino (@paoloardoino) July 29, 2020
As Decrypt reported, Bitcoin broke the $10,000 and $11,000 marks on July 26–27, driving the crypto market into a strong rally. As a result, trading volumes have doubled and Bitcoin is being pumped back into exchanges. It’s no wonder that demand for Tether is on the rise.