Tether issued $1 billion in new USDT tokens on the Tron blockchain as stablecoins’ total market cap grew. The minting comes amid increasing demand and growing confidence in stablecoins.
Experts from blockchain analytics firm Nansen remain cautious. They note it’s challenging to assert that this minting indicates upcoming price increases.
Nansen analyst stated, "Given there were many other factors at play in October 2023, it’s hard to justify [the minting] being the next leg up on its own."
Factors to consider include on-chain decentralized exchange volumes, address stats, and off-chain data like exchange-traded fund flows, macro outlooks, and monetary policies.
Current trends suggest the crypto market needs further evidence to convince technical observers of higher prices, despite the stablecoin market cap surpassing $160 million.
The specific stablecoins boosting circulation highlight advancing user demand. Nansen data noted Circle’s USDC, Tether’s USDT, Maker’s DAI, Paxos’ PYUSD, and USDD.
