The Latest Minting: Just Another Day in Tether Land
On June 12, Tether decided to refresh its wallet with a cool $1 billion worth of USDT minted on the Ethereum blockchain. Yes, you read that right! It’s like Tether opened their vault and let the money rain down. But before you get all excited, this mint is labeled as an “authorized but not issued” transaction. What does that mean? Grab a donut and let’s dive into it!
Understanding Authorized but Not Issued Transactions
Paolo Ardoino, Tether’s CTO, took a break from posting memes on Twitter to clarify that this minting is merely part of their “inventory replenish”. This means that although billions were minted, they won’t actually float around on the market just yet. Instead, the minted USDT will sit pretty until the next wave of issuance requests comes knocking, like a toddler waiting for dessert after dinner.
What’s This About Chain Swaps?
Now you may be wondering, what in the blockchain world is a chain swap? Think of it as a digital asset’s equivalent of a family road trip. Traders often need to transfer their tokens from one blockchain to another to keep things balanced at exchanges. If an exchange finds itself swimming in Ethereum USDT while folks on the Tron blockchain are dry, they’ll call Tether for a swap. “We help exchanges to rebalance their USDT across blockchains,” Ardoino explained. Because, let’s face it, nobody wants a shortage of USDT when it’s time to cash out!
Tether’s Impact on Market Dominance
As of 2023, Tether has created more than $16 billion in new USDT, bringing its total market cap above a staggering $83 billion. Talk about leaving the competition in the dust! With other stablecoins struggling due to regulatory nightmares, USDT’s market dominance is soaring to new heights like an eagle on a thermals.
The Rise and Fall of USDC
Remember when USD Coin (USDC) was hot on Tether’s heels and about to snatch the crown? Well, it seems like USDC took a trip through a crypto winter and ended up facing issues due to banking crises. Circle CEO Jeremy Allaire has been scratching his head, attributing USDC’s declining confidence to increased regulatory pressure. In a world where resilience is key, it looks like Tether has been hitting the gym while USDC has been binge-watching reality TV instead.
