The Tether Treasury has minted around $540 Mln of its United States dollar-backed stablecoin within the past 3 days, as Bitcoin’s price rallied above $11,000 USD.
In line with Whale Alert, around $300 Mln was created today on the Tron network, after two of the previous mints of $120 Mln on Ethereum within the past three days.
Cryptocurrency exchange Bitfinex and Tether CTO Paolo Ardoino explained on Twitter that the transactions were to replenish the inventory, in preparation for more demand.
“Note : This is a (sic) authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests,” he added.
Tether is the leading stablecoin with a market capitalisation of over $10 Bln. Its value is pegged to the USD, permitting it to avoid the price fluctuations typical of most crypto assets.
As Decrypt reported, Bitcoin [BTC] broke the $10k and $11k benchmarks earlier on 26–27 July, pushing the price of crypto market into a robust rally. As a result, trading volumes have doubled and Bitcoin is being pumped back to exchanges. It’s no wonder that demand for Tether is on the increase too.