Tether has stirred things up in the crypto market once again. The first is that it recently issued a staggering 1 billion USDT on the Tron network.
This happened six hours ago, and it was a part of something Tether has been doing all year in 2025, which is ramping up supply. 1 billion USDT is no tiny sum, and it has obvious implications for liquidity on the Tron network. Tron has quickly established itself as a stablecoin hub. Besides the Tron issuance, in the last few hours, Tether has also issued 125 million USDT on the Ethereum network.
A Billion-Dollar Boost to TronThe latest mintage of Tether takes the total amount of USDT created on Tron up to 8 billion this year, showing off the network’s growing dominance in stablecoin transfers. In the meantime, Tether has burned 1 billion USDT on Ethereum, suggesting a somewhat deliberate shift in strategy from one blockchain to another.
Choosing Tron is not a mystery for anyone who understands its architecture and appeal. For one, Tron offers something that most of its competitors do not: low transaction fees coupled with high speed. That makes it a favorite for not just stablecoins but also all manner of tokenized assets looking to bypass the swiftness and cost bottlenecks found in other platforms. So it’s probably safe to say at this point that the Tron’s ecosystem has emerged as the first namespace for cheap and fast stablecoin transactions, outpacing even Ethereum in certain use cases.
Injecting another billion USDT into Tron not only uplifts the liquidity but also augments the network’s utility as the backbone for stablecoin-fueled economic activity. Whether it is for P2P payments or large-scale institutional flows, USDT on the Tron network continues to reassert and even extend its dominance.
Exchange Inflows and Market PositioningInformation from multiple sources indicates that traders are rapidly channeling a portion of their funds into centralized trading platforms, most likely for the reasons mentioned above. Where is this money coming from? Well, in the last report we looked at, a little more than half this uptick was traced back to a single trading entity.
Such large inflows of stablecoins are often heralded as early signals of market activity, especially when they happen to coincide with price dips or consolidation periods. Investors, in this case, seem to be moving USDT onto exchanges in order to execute two main strategies: buying into assets they expect to rebound (which could mean anything from Ethereum to U.S. Treasury bonds) and using USDT to settle leveraged positions after the market has just undershot or overshot its equilibrium (in which case what we have here is simply a short-term return to equilibrium after the market has corrected a bit, which, again, seems to be a pretty good description of the current situation).
Some analysts see the mintage of 1 billion USDT as a precautionary step to guarantee there’s enough liquidity on hand to satisfy the trading demand they expect in the near future. Tether’s frequent supply increases certainly wouldn’t suggest its parent company is short on stablecoin confidence. To the extent its demand reflects a readiness to dive back into crypto, that is, to the extent new USDT inflows and the buying they represent signify an uptick in trust in the virtual asset space, Tether hardly seems like a company in retreat.
Tether’s Supply Strategy: Aggressive Yet TargetedTether’s moves in 2025 look incredibly calculated. Rather than dispersing mints across a variety of chains, they have been minting almost exclusively on Tron. The burn on Ethereum—1 billion USDT removed from supply—hints at something more than just basic inflation. By cutting supply on a much more expensive and slower network while concentrating liquidity on our fast and cheap network, they appear to be fine-tuning the utility of USDT within the larger financial ecosystem.
Tether remains the leading stablecoin provider despite ongoing regulatory and analytical scrutiny. Its USDT market cap is well ahead of its nearest competitor. And when it comes to day-to-day liquidity, Tether is unmatched. Unlike other stablecoin issuers, it can mint and move billions at a moment’s notice.
The expanded meaning comes through loud and clear: when traders and institutions seek to use stablecoins in the times we’re currently living through, Tether’s minting serves as a leading indicator of sentiment and activity. If you want altitude in this conversation, just look at the gross numbers.
With 8 billion USDT already created on Tron in just the first few months of 2025, and momentum clearly accelerating, this trend shows no signs of slowing down.
New York, 6 February 2023 (CryptoSlate) — Tether continues to expand its influence in the crypto market. Despite the ongoing legal actions against its management, the company has printed $16 billion in USDT since 2021. A large portion of this USDT has been used within the TRON blockchain, where it is now the second most used currency after TRX.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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