Since its early April rally, Bitcoin (BTC) has formed higher lows while climbing steadily amid minor fluctuations. Meanwhile, Tether seems to have developed an "over-issuance addiction," minting approximately 640 million USDT across three major platforms this month alone.
Recent USDT Issuance Spree
In the past 24 hours, Tether conducted large-scale issuances on:
- The Bitcoin-based Omni Protocol: 300 million USDT
- Ethereum Network: 70 million ERC20 USDT
- Tron Platform: 49.9 million TRC20 USDT
This brings the total newly issued USDT to 420 million, pushing its market capitalization above $2.8 billion for the first time.
ERC20 USDT Dominance
This marks Tether’s fourth ERC20 USDT issuance in April, totaling 240 million USDT. Currently:
- Circulating Supply: 300,010,000 ERC20 USDT
- Market Share: 8.52% of stablecoins (surpassing USDC and TUSD)
Market Impact: Price Support or Manipulation?
BTC’s price surged past $5,600 this month—its yearly peak—even as altcoins faced volatility. Analysts note a 168% increase in stablecoin trading volume (April 2–3), coinciding with BTC’s price rally, suggesting short-term capital inflows from over-the-counter markets.
👉 How does USDT issuance affect crypto markets?
Academic Perspectives
A 2018 University of Texas study argued that 50% of BTC’s 2017 bull run correlated with Tether being funneled into exchanges. Key findings:
- USDT buys spiked during BTC dips, reversing downtrends.
- No equivalent sell pressure appeared during rallies.
Professor John Griffin recently told Bloomberg:
"Tether’s dual role in stabilizing and potentially manipulating BTC prices leaves detectable historical patterns. The data aligns with market manipulation hypotheses."
Regulatory Scrutiny
In late 2017, the CFTC subpoenaed Tether over price manipulation concerns, though the company denied all allegations.
FAQ
Q: Why does USDT issuance matter?
A: Increased USDT supply can inflate trading volumes and artificially prop up crypto prices, raising sustainability concerns.
Q: How does Tether issuance affect Bitcoin’s price?
A: Historical data suggests USDT is often used to buy BTC during downturns, creating artificial demand.
Q: Is Tether’s transparency improving?
A: While Tether publishes attestations, critics argue for full audits to verify reserves.