The Tether Treasury has continued in its minting streak, creating another 15 million USDT tokens on the TRON network
Demand for Bitcoin has skyrocketed recently, with this new excitement from investors just weeks before the standard cryptocurrency underwent an anticipated Halving of the mining reward. The Tether Treasury has continued in its minting streak, creating another 15 million USDT tokens on the TRON network. The token has been carried by a number of large exchanges such as Binance.
The Tether Treasury has issued 15 million USDT tokens on the TRON network
The short-term implication of halving the price of Bitcoin is controversial, but this is a specific rally event from a long-term perspective as it reduces the crypto’s annual inflation rate by 50%.
The rising demand for Bitcoin is unraveled while looking for the cumulative ratio among whales, and can also be seen by the massive issuance of freshly minted Tether (USDT).
Cryptocurrency investors have long viewed tether’s so-called Tether printer as an indicator of where Bitcoin might trend next. The issuance of USDT tokens isn’t a decisively bullish or bearish occurrence in itself, as it can suggest that demand for the token is rising due to traders fleeing positions in volatile digital assets.
That could also mean having more money in the market by using USDT as a gateway, with the growth of these stablecoins being a sign of high demand for Bitcoin and other cryptocurrencies.
Today, another $ 240 million USDT has been printed.
? ? ? ? ? ? ? ? ? ? 120,000,000 #USDT (121,137,048 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) April 27, 2020
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? ? ? ? ? ? ? ? ? ? 120,000,000 #USDT (121,232,432 USD) minted at Tether Treasury
— Whale Alert (@whale_alert) April 27, 2020
Tether CTO Paolo Ardoino was quick to respond to these tweets, explaining that $120m of the total $240m issuance was an inventory replenish. This is a sign that demand for the stablecoin is on the up-and-up.
PSA: 120M USDt inventory replenish.
Note this is a authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests.— Paolo Ardoino (@paoloardoino) April 16, 2020
Although in the near-term this isn’t conclusively bullish for Bitcoin, it is highly probable that this money will ultimately be siphoned into Bitcoin and other cryptocurrencies, acting as a war chest for the market.
The tokens in question are ERC-20 tokens which were issued via the TRON network. Tether and TRON first signed a deal to allow the issuance of USDT as an ERC-20 token in April 2019. In February 2020, however, Tether carried out a transaction worth $300 million on the TRON network and almost immediately burned the tokens.
Source: Whale-alert.io
Demand for Bitcoin flourishes as the whale enters full accumulation mode
The massive spike seen in Tether issuance is one sign of increased investor activity in the market, but another more overtly bullish sign is the recent accumulation undertaken by Bitcoin whales.
Last week, data from analytics platform Glassnode shows that 2020 has been a year of accumulation for so-called BTC whales.
“The number of BTC whales continues to grow, hitting 2-year highs – the last time we saw this many during an accumulation phase was in 2016. This becomes interesting when we compare it with the last Bitcoin halving.”
While coupling this with the latest USDT issuance it becomes clear that market participation rates amongst investors are rising rapidly as the halving fast approaches.
Read more:
- The Additional $120 Million USDT Comes Just Three Days After The Same Amount Was Minted
- Tether Minted An Additional 240 Million USDT, Bringing The Monthly Total To $960 Million