The USDT market capitalization reached new highs during November 2023, as tokens in the broader crypto and defi ecosystem recorded price increases due to significant cash inflows.
Tether’s USDT, the largest stablecoin in cryptocurrencies, hit an all-time high of $89 billion thanks to increased minting activity by the digital asset payments giant since late October 2023, according to Arkham Intelligence, an on-chain analytics provider.
USDT’s market capitalization grew by $4.5 billion in 30 days and most of this new supply was minted on Tron, the cryptocurrency network created by HTX advisor and Poloniex founder Justin Sun. Tether minted $3 billion on the Sun blockchain.
Additionally, Kraken deposit wallet ‘TQef1’ received $2.5 billion, while $400 million of these new Tether tokens were created within a week.
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In the last month, USDT supply increased by $4.5 billion with $3 billion of USDT minted on Tron. Of that amount, $2.5 billion has been minted in a single Kraken deposit address, TQef1.
In the last week alone, they minted $400 million worth of Tether.
The USDT market capitalization is at an all-time high of $89 billion.
Follow-up of the massive… pic.twitter.com/KQoBhzr46D
– Arkham (@ArkhamIntel) November 28, 2023
Paolo Ardoino, CEO of Tether, reiterated that huge USDT coins were designated from the company’s treasury to ensure liquidity on Ethereum and Tron. Ardoino was named head of Tether after former CEO Jean-Louis van der Velde moved into an advisory role.
Public Service Announcement: 1 billion USDt inventory replenishment on the Ethereum network. Please note that this is an authorized but not issued transaction, which means that this amount will be used as inventory for issuance requests and on-chain exchanges in the next period.
– Paolo Ardoino 🍐 (@paoloardoino) November 27, 2023
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An increase in the market capitalization of stablecoins is generally associated with bullish momentum and could indicate renewed demand for cryptocurrencies. The US dollar-pegged tokens serve as a gateway for traders to exchange their digital assets for fiat currencies and vice versa, also known as on- and off-ramps.
While Tether’s market capitalization has increased noticeably, other stablecoins have seemingly stalled in growth based on data available on Coingecko, with USDT dominating the market at the time of this publication. Its closest rival, Circle’s USD Coin (USDC), had a market capitalization of $24 billion, up from $40 billion a year ago.
Circle was reportedly caught in the middle of a banking crisis in the US during the first half of 2023, where crypto-friendly financial houses like Silicon Valley Bank and Silvergate suffered bank runs. The USDC issuer, however, remained optimistic about future trading.
Total market capitalization of stablecoins | Source: Coingecko
Read more: CoinShares reports that total inflows in 2023 have now surpassed those in 2022
