The addition of 3 billion USDT by Tether is an important event in the recent cryptocurrency market, and the following is an analysis from the aspects of reasons and impacts:
Reason for new minting: Increase in market trading demand: If the cryptocurrency market is in an upward trend or exhibiting significant volatility, trading activity will increase, and investors will need more stablecoins to trade, hedge risks, or participate in financial activities. Tether's issuance of USDT is to meet this part of the demand and maintain stable market operation.
Demand in the Ethereum ecosystem: The Ethereum chain has a large DeFi market and many cryptocurrency trading applications. Minting USDT on this chain can directly provide sufficient stablecoin support for transactions within the Ethereum ecosystem, meeting the funding needs of various projects within its ecosystem.
Demand from institutional investors: As the cryptocurrency market is gradually recognized by more institutions, the demand from institutions for stablecoins is constantly increasing. Tether's new minting may be in response to the large demands from institutional investors.
Recently, Tether has had multiple operations of minting USDT on both the Ethereum and TRON chains, with the specific situations as follows:
1 billion USDT added on the Ethereum chain on July 17: According to Blockchain Network, at midnight on July 17, 2025, Beijing time, Tether minted 1 billion USDT on the TRON chain.
2 billion USDT added on the Ethereum chain on July 16: According to Whale Alert monitoring, Tether Treasury minted a total of 2 billion USDT on the Ethereum chain in two transactions.
1 billion USDT added on the TRON chain on July 11: According to Coin World, Tether minted 1 billion USDT on the TRON chain, reflecting strong market demand for stablecoins and possibly a positive response to the recent recovery in the cryptocurrency market.
1 billion USDT added on the TRON chain on July 10: According to PANews, at 20:05 Beijing time on July 10, Tether Treasury minted 1 billion USDT on the TRON chain, approximately equivalent to 1.0013 billion USD.
1 billion USDT added on the Ethereum chain on July 4: The blockchain monitoring platform Whale Alert disclosed that Tether issued 1 billion USDT on the Ethereum network. Tether CEO Paolo Ardoino stated that the newly issued USDT belongs to the 'authorized but unissued' reserve portion, aimed at meeting future market demand.
Impact on the cryptocurrency market:
Increased liquidity: The large minting of USDT will inject liquidity into the cryptocurrency market. As a medium of exchange, the ample supply of stablecoins helps improve trading efficiency, reduce transaction costs, and attract more investors into the market, promoting market development.
Promoting the development of the Ethereum ecosystem: The newly added USDT can flow into Ethereum's DeFi protocols for lending, liquidity mining, and other activities, further activating the flow of funds within the ecosystem, promoting the development of related businesses, and enhancing the vitality and attractiveness of the Ethereum ecosystem.
Impact on market sentiment: Some investors may see this as a signal of healthy market development, enhancing their confidence in the cryptocurrency market; however, some investors may worry about the inflation risk brought by the increase in issuance or have doubts about Tether's reserve status, which could trigger market panic and lead funds to flow into other stablecoins or assets.
Changes in competitive landscape: The increase in the circulation of USDT after its issuance may affect the market share of other stablecoins. As the largest stablecoin issuer in the market, Tether's actions may put it in a more favorable position in competition with rivals like USDC and BUSD.
Potential risks and challenges: Inflation risk: Although USDT is pegged to the US dollar, its large-scale issuance may still trigger market concerns about the value of stablecoins. If there is an oversupply of USDT in the market, it may affect its stability, leading to fluctuations in its peg to the dollar.
Regulatory risk: The cryptocurrency market is facing increasingly strict regulations from governments around the world. Tether's large-scale issuance of USDT may attract more attention from regulators, facing stricter scrutiny. If it does not comply with relevant regulatory requirements, it may face penalties or restrictions, affecting its operations and market position.
Trust risk: Tether has repeatedly emphasized that the USDT it issues is supported by sufficient reserve assets. After this large-scale increase in issuance, the market will expect timely disclosure of reserve information. If Tether cannot timely and transparently announce relevant information, it may reduce market trust in it, affecting its long-term development.