The Tether Minting Spree doesn’t seem to be slowing down any time soon. So far in May, the total number of USDT tokens minted by the Stablecoin giants is equal to the total produced during the first half of April.
Tether mints spree sees 480 million tokens produced
According to the cryptocurrency transaction record firm, Whale Alert, the Tether Treasury has minted five more piles of new USDT tokens in the space of a week. The newly printed amount is USD 480 million, valued at USD 480.4 million. Interestingly, a similar number of USDT tokens were minted in the first 14 days of April.
During April, the Tether Treasury saw its most active period in the production of fresh tokens. The stablecoin developer produced a massive 1.58 billion new USDT tokens last month. The Tether Treasury produced 220 million USDT tokens this week on Thursday 7 May. A further 100 million new tokens have been printed today
If the Tether minting spree continues at this rate, the amount produced in May is likely to double the amount produced last month. At press time, Tether’s total market cap was $8,359,237,890 per CoinGecko.
Tether printing does not influence crypto prices
In general, stablecoins are backed by fiat currency or assets. In the case of Tether, the US dollar is backed at a ratio of 1:1. There are a number of arguments that the production of USDT affects the price of digital currencies.
However, Tether maintains that its production of tokens is down to an increase in market demand. However, a new study asserts that the market entry of fresh stablecoins does not increase the price of digital currencies.
In the case of Bitcoin, its mammoth rally from its March crash in April took place at the same time as the 1.5 billion USDT fresh tokens minting period. Interestingly, BTC’s recent $10,000 increase coincided with the new 480 million Tether Minting Spree.