Tether, the issuer of the USDT stablecoin, has minted 7 billion USDT in the last three months, pushing the total supply beyond 90 billion tokens. The rising amount of USDT in circulation coincides with Tether’s recent crackdown on the illicit use of its stablecoin.
As of press time, USDT’s market capitalization stands at $90.6 billion. This marks a notable 9% increase, solidifying USDT’s position as one of the fastest-growing stablecoin in the current year.
What USDT Increasing Supply Means
Observers have suggested that the substantial increase in USDT’s supply reflects improved market conditions and enhanced traders’ confidence.
USDT, being the largest dollar-pegged stablecoin in the market, has emerged as a vital conduit for crypto trading activities. Data from BeInCrypto shows that it is one of the most used digital assets, with a trading volume nearing $30 billion during the past day.
The rising supply is also a signal of new market entrants and increased trading activities among existing participants.
“Around 80% of active stablecoin addresses each week use USDT,” TRON DAO said.
Besides that, an uptick in the supply of USDT traditionally corresponds with price surges across the crypto market, influencing the prices of Bitcoin and altcoins. The recent trend occurred while flagship digital assets like Bitcoin and Ethereum rose to new yearly peaks amid market optimism about the potential approval of a spot Bitcoin ETF.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
Tether Floats New Wallet-Freezing Policy
Tether has also initiated a clampdown on the illicit use of its stablecoin by introducing a new voluntary wallet-freezing policy. Introduced on December 1, it allows the stablecoin issuer to voluntarily freeze wallets associated with individuals on the US Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list.
CEO Paolo Ardoino described the move as a proactive measure designed to prevent potential misuse of USDT. He emphasized Tether’s commitment to freezing existing and newly added addresses on the SDN list.
Ardoino highlighted that this initiative aligns with Tether’s dedication to maintaining high safety standards. Additionally, the firm aims to strengthen the positive use of stablecoin technology and foster a safer ecosystem for all users.
“By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users,” Ardoino said.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
