This article briefly:
•Tether minted 7 billion USDT in the past 3 months, significantly increasing its supply to over 90 billion tokens.
•The increase in USDT supply indicates growing market confidence and trader demand for stablecoins.
•Meanwhile, the stablecoin issuer launched a new voluntary wallet freezing policy to prevent potential abuse.
Tether, the issuer of the USDT stablecoin, has minted 7 billion USDT in the past three months, bringing the total supply to more than 90 billion. The increase in USDT circulation coincides with Tether’s recent crackdown on illegal use of its stablecoin.
At press time, USDT’s market cap is $90.6 billion. This marks a significant 9% increase, solidifying USDT’s position as one of the fastest-growing stablecoins this year.
What does the increase in USDT supply mean?
Observers believe that the sharp increase in USDT supply reflects improved market conditions and increased trader confidence.
USDT is the largest dollar-pegged stablecoin on the market and has become an important channel for cryptocurrency trading activities.
On-chain data shows that it is one of the most used digital assets, with trading volume approaching $30 billion in the past day.
Increased supply is also a signal of increased trading activity from both new market entrants and existing players.
“Approximately 80% of active stablecoin addresses use USDT each week,” TRON DAO said.
In addition to this, increases in USDT supply have traditionally corresponded with price surges across the cryptocurrency market, affecting the prices of Bitcoin and altcoins. The recent trend comes as flagship digital assets such as Bitcoin and Ethereum have risen to new yearly highs on market optimism over the potential approval of a spot Bitcoin ETF.
Tether Introduces New Wallet Freeze Policy
Tether has also begun to combat illicit use of its stablecoin by introducing a new voluntary wallet freezing policy. Launched on December 1, it allows stablecoin issuers to voluntarily freeze wallets associated with individuals on the U.S. Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list.
CEO Paolo Ardoino described the move as a proactive measure to prevent potential abuse of USDT, and he highlighted Tether’s commitment to freezing existing and newly added addresses on the SDN list.
Ardoino stressed that this move is in line with Tether’s commitment to maintaining high security standards. In addition, the company aims to strengthen the positive use of stablecoin technology and build a safer ecosystem for all users.
“By enforcing voluntary wallet address freezes for new additions to the SDN list, as well as freezing previously added addresses, we will be able to further strengthen the positive use of stablecoin technology and promote a safer stablecoin ecosystem for all users,” Ardoino said.
