Bitcoin’s Journey to $100K Get $1B Push from Tether

Tether, the issuer of the USDT stablecoin, minted an additional $1 billion in tokens on the Ethereum blockchain on November 29, coinciding with a surge in crypto market trading activity. This comes as Bitcoin inches closer to the $100,000 mark.

Tether minted another 1B $USDT!#Tether has minted 14B $USDT since Nov 8!https://t.co/O3xDQf7ZwD pic.twitter.com/EsgCuskbSG

— Lookonchain (@lookonchain) November 29, 2024

Data from blockchain platform Lookonchain reveals that Tether has issued about $14 billion in USDT since November 8, shortly after Donald Trump secured the U.S. presidential election. Following Trump’s win, Bitcoin’s price skyrocketed from around $69,000 to a record high exceeding $99,000.

As of press time, BTC is trading at $96,900, reflecting a 3.02% decrease from its all-time high.

Stablecoin Minting Signals BTC Boost

Notably, stablecoins like USDT play a crucial role in cryptocurrency trading by providing liquidity and serving as an intermediary for buying and selling digital assets, including Bitcoin. Many traders view large-scale stablecoin minting as a bullish signal, indicating increased capital inflows that could increase Bitcoin’s price.

The trend is reflected in the recent surge of stablecoin deposits on Binance, the largest centralized exchange. A crypto analyst on X observed that Binance recorded an all-time high of $10.2 billion in stablecoin inflows over the past month, underscoring the increasing capital flowing into the crypto market.

Growing Demand for Stablecoins

The growing demand for stablecoins aligns with a recent analysis by Messari, a provider of crypto market intelligence products, which emphasized how stablecoins are transforming financial systems in emerging markets. 

According to Messari, the accessibility and simplicity of stablecoins are fostering user engagement. They are also supporting the growth of PayFi, a hybrid model that integrates centralized finance (CeFi), decentralized finance (DeFi), and fintech to create tailored payment solutions.

The analysis also revealed that USDT has seen significant growth on the Tron and Ethereum networks compared to other blockchains. While Ethereum has recently surpassed Tron in holding the largest share of USDT’s $135 billion supply, Tron’s USDT volume has still grown substantially.

Messari reported that Tron’s USDT supply has surged 25% this year. Meanwhile, Tron’s monthly transfer volume in November reached $500 billion, a substantial increase from $350 billion during the same period last year. The growth reflects a growing trend of stablecoin usage in real-world applications.