In one fell swoop, 1,000,000,000 USDt tokens worth a billion dollars were minted yesterday.
💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 1,000,000,000 #USDT (1,000,000,000 USD) minted at Tether Treasuryhttps://t.co/kqoOWdUoeG
— Whale Alert (@whale_alert) September 6, 2021
Tether has generated similar amounts of new USDt several times in recent weeks, usually on the Tron blockchain and mostly for technical purposes.
Billions of new tokens are being used as inventory.
Yesterday’s transaction, in which one billion new USDt tokens were generated on Tron’s blockchain, was authorized but unissued, as these billions of new USDt tokens on Tron will be used as inventory for future issuance requests, as stated by Tether’s CTO Paolo Ardoino.
As of the 10th of May, there had been 17 other similar transactions, plus five more in the first five months of 2021.
These were authorized but unissued transactions in some cases, and swaps between USDt on Ethereum and USDt on Tron in others.
While swap transactions do not generate new USDt because the old ones are swapped to Tron and simultaneously burned, resulting in no new USDt in circulation, authorized but unissued transactions do generate new USDt that can later be traded.
Officially, there are approximately 33.8 billion USDt authorized on the Ethereum blockchain as of today, but 274 million have yet to be issued.
The Tron blockchain has nearly 34 billion authorized tokens, which is more than Ethereum, but one billion has yet to be issued.
The number of USDT tokens minted is increasing.
In total, over 68 billion USDt tokens have been authorized and issued, with an additional 1.8 billion authorized but not yet issued.
There are still 1.3 billion authorized USDt tokens on Omni, a Bitcoin sidechain, but 418 million are unissued, which is more than the current number of unissued tokens on Ethereum.
During 2021, the total market capitalization of all USDt tokens in circulation on all blockchains increased from nearly 21 billion at the end of 2020 to more than 68 billion today, with a real surge that began in February and ended only in mid-May, when they rose from around 25 billion to nearly 59 billion, a 136 percent increase in just three and a half months.
After a period of stagnation at around $63 billion in capitalization that lasted until just before mid-August, a new phase of growth began, albeit at a slightly slower pace than in the first months of the year.
It has risen from approximately 62.5 billion to the current 68 billion in the last 30 days, an increase of only 8% in one month.
There was a small increase yesterday, with a sudden jump from 67.1 to 67.9.
Increases in USDt market capitalization frequently follow bullish phases in cryptocurrency prices, which is when many people decide to exchange USD for USDt in order to trade in crypto markets more easily.