Tether's Latest Minting on Ethereum
Tether Treasury recently minted another $1 billion USDT on the Ethereum blockchain, bringing its total issuance over the past year to an impressive 23 billion USDT. This significant minting event has caught the attention of the cryptocurrency market, particularly due to the substantial transfers of USDT to prominent centralized exchanges (CEXs), suggesting possible shifts in market liquidity and investor sentiment.
Cumberland’s Role in USDT Transfers
After the latest minting, Tether transferred 183.2 million USDT to Cumberland, a well-known trading firm. Cumberland has been pivotal in moving USDT into various CEXs. Since the market crash on August 5, 2024, Cumberland has received a whopping 953 million USDT from Tether and injected 906.7 million USDT into major exchanges such as Coinbase, Kraken, OKX, Binance, and Bullish.
Coinbase emerged as the largest recipient, with 106.07 million USDT received in the last 24 hours, adding to a hefty total of 468.96 million USDT from Cumberland since August 6, 2024. Kraken followed with a deposit of 64.13 million USDT in the past 24 hours, making up 207.58 million USDT overall. Despite no recent deposits to Binance and Bullish, they have collectively received 81.64 million USDT and 32.00 million USDT, respectively, since early August. Cumberland’s strategic distribution of USDT across these platforms underscores its critical role in maintaining market liquidity.
Bitcoin Traders Eye Stablecoin Inflows
In light of these developments, Bitcoin traders are paying close attention to stablecoin inflows, which are considered potential indicators of market movements. 10x Research, a digital asset research firm, highlighted that the recent $2.5 billion stablecoin inflow, inclusive of the $1 billion USDT mint, might have a bullish impact on Bitcoin. Tracking these monetary flows is crucial, as they can serve as tailwinds or headwinds for cryptocurrency prices.
The firm pointed out that a significant portion of USDT and Circle-issued stablecoins entering the market could indicate new capital inflows, potentially leading to further price gains if this trend persists.
The Minting is a Pattern
The current USDT minting event on Ethereum mirrors a pattern observed in July, when Tether minted 1 billion USDT on the Tron Network. Historically, these large-scale minting activities have played a role in influencing Bitcoin and other cryptocurrencies' price movements. Notably, the minting of 3 billion USDT in March was followed by extended bullish trends.
Data from CryptoQuant shows that the circulating supply of USDT has surged by 30 billion since late 2022, significantly enhancing market liquidity and boosting investor confidence.
Disclaimer: This content is for informational purposes only and should not be regarded as financial advice. Readers are advised to conduct thorough research before making investment decisions.
