Tether’s USDT Supply Surpasses 90 Billion Tokens
Tether, the issuer of the USDT stablecoin, has recently minted 7 billion USDT in the last three months, pushing the total supply beyond 90 billion tokens. This increase in USDT circulation coincides with Tether’s efforts to crack down on illicit use of its stablecoin. Currently, USDT’s market capitalization stands at $90.6 billion, marking a significant 9% increase and solidifying its position as one of the fastest-growing stablecoins this year.
What Increasing USDT Supply Means
Observers suggest that the substantial increase in USDT supply reflects improved market conditions and enhanced traders’ confidence. As the largest dollar-pegged stablecoin in the market, USDT has become a vital conduit for crypto trading activities. It is one of the most widely used digital assets, with a trading volume of nearly $30 billion in the past day. The rising supply also indicates new market entrants and increased trading activities among existing participants.
Impact on Crypto Market and Price Surges
An uptick in USDT supply traditionally corresponds with price surges across the crypto market, influencing the prices of Bitcoin and altcoins. This recent trend aligns with flagship digital assets like Bitcoin and Ethereum reaching new yearly peaks amid market optimism about the potential approval of a spot Bitcoin ETF.
Tether’s New Wallet-Freezing Policy
Tether has introduced a new voluntary wallet-freezing policy to combat illicit use of its stablecoin. Starting from December 1, Tether can voluntarily freeze wallets associated with individuals on the US Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list. This proactive measure aims to prevent potential misuse of USDT and demonstrates Tether’s commitment to maintaining high safety standards. The firm will freeze existing and newly added addresses on the SDN list to foster a safer stablecoin ecosystem for all users.
Hot Take: Tether’s Growing Supply and Enhanced Security Measures
Tether’s continuous increase in supply showcases the growing demand and confidence in its stablecoin. The rising circulation of USDT reflects favorable market conditions and increased trading activities. Additionally, Tether’s introduction of a wallet-freezing policy demonstrates its proactive approach to preventing misuse of its stablecoin and promoting a safer ecosystem for users. These developments contribute to the overall growth and stability of the cryptocurrency market.
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