According to SpotOnChain, Tether has minted $5 billion worth of USDT stablecoin over five days, coinciding with Bitcoin's rally to $93,000.This massive liquidity boost aligned with Bitcoin’s push towards the $93,000 milestone. The influx of funds has fueled an already bullish market, providing Bitcoin the boost it needed to surge forward.
Source: SpotOnChain
In the past 5 days, the BTC price kept setting new record highs as Tether Treasury minted a net 5B USDT on both Ethereum and Tron, including:
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a net 1B USDT on November 6, after which the BTC price rose to a new high of $76,200;
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2B USDT on November 9 and 10, after which the BTC price reached a new all-time high of $89,500;
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2B USDT on November 12
SpotOnChain data shows Tether began minting $1 billion USDT on November 6. This mint coincided with Bitcoin reaching $76,200. Tether followed up with $2 billion on November 9 and 10, propelling Bitcoin past $80,000. On November 11, Tether added another $2 billion. In five days, Tether minted a total of $5 billion, adding critical liquidity at the right time.
Tether's market cap jumped to $124 billion, cementing its dominance as the leading stablecoin. This represents a 4.2% growth from its earlier $119 billion. USDT remains a key player in the crypto world, providing liquidity for centralized and decentralized trades. CryptoSlate data shows USDT’s 24-hour trading volume hit $289 billion. Traders are using USDT as a bridge to seize opportunities during this rally.
Impact of USDT Supply on the Market
Tether’s supply expansion came as the market rallied. More USDT in circulation means more liquidity. Historically, an increase in USDT supply correlates with gains in major cryptocurrencies like Bitcoin and Ethereum. USDT offers an easy route into the crypto market, providing stable buying power. As Tether pumped more USDT into the market, liquidity surged, allowing for efficient trades.
Bitcoin's price jumped 11% in five days, reaching close to $90,000 on November 12, 2024. The added USDT fueled this climb by making fresh trading capital available. Tether’s minting spree helped maintain bullish momentum by boosting liquidity across exchanges.
With a market cap of $124 billion, USDT now controls roughly 63% of the stablecoin market, which stands at $197 billion. This makes Tether the backbone of market liquidity. The fresh $5 billion has not only propelled Bitcoin but has also reinforced market stability.
Read more: USDT vs. USDC: Differences and Similarities to Know in 2024
Tether Launches Wallet Development Kit
Source: X
Tether also recently launched a wallet development kit (WDK) designed for seamless integration of non-custodial wallets on November 12th. The WDK is modular and open-source, making it easy for developers to add wallet features to their platforms. It supports individual users and emerging digital entities like AI agents and robots.
The WDK gives developers tools to create wallets for mobile, desktop, and web. It is fully self-custodial, meaning users have complete control over their assets. Tether CEO Paolo Ardoino stated that the WDK will empower users to manage their finances with "programmable open resilient systems" that connect people, machines, and communities.
Ardoino added:
“WDK by Tether is focusing on open-source, super-modular, highly scalable and battle tested development libraries that are easy to integrate on any platform, from embedded devices to mobile, from laptop apps to websites, from AI agents to robotic brains.”
Conclusion
Tether's $5 billion USDT injection added crucial liquidity, which might be another trigger to push Bitcoin towards $93,000. The increase supported a bullish market, with USDT now commanding a $124 billion market cap. Tether's new wallet development kit further strengthens its offerings, empowering developers to build self-custodial wallets that keep users in control.
The combination of increased USDT supply and new technology solidifies Tether's central role in the crypto market. As Bitcoin pushes higher, Tether's liquidity and innovation will continue to be vital in driving market growth and sustaining momentum.
Read more: All You Need to Know About Global Dollar (USDG) Stablecoin
