Tether’s $1 Billion USDT Issuance on Ethereum: Signaling a Bull Market for DeFi?
The Implications of Stablecoin Market Value Growth
The expansion of stablecoin market value, akin to the increase in traditional financial systems’ money supply, indicates a surge of funds into the cryptocurrency market. This influx, primarily driven by stablecoins, not only boosts liquidity but also energizes on-chain trading activities. The market value of stablecoins is a critical catalyst for igniting a bull market in the crypto world.
Further reading：Cantor Fitzgerald CEO Declares Himself a ‘USDT Superfan’, Bullish on Bitcoin Halving
Tether Issues $1 Billion USDT on Ethereum
As monitored by @whale_alert, Tether, the largest stablecoin issuer, added 1 billion USDT to the Ethereum network on December 25. This authorized but not yet issued transaction indicates preparation for future issuance requests and chain swaps, as clarified by Tether’s CTO on social media.
USDT’s Market Share and Growth
According to DeFiliama, the overall stablecoin market value stands at approximately $130 billion, with USDT holding a dominant share of 69.85% (around $91.2 billion). Over the past month, USDT’s market value has shown a growth of 2.83%, reflecting a positive trend.
Ripple Effects on DeFi Protocols and Total Value Locked (TVL)
Stablecoins often lead the charge in the DeFi realm, with their influx into the market followed by an increase in the total value locked (TVL) in DeFi protocols and public chains.
Further reading：Tether’s Ambitious Expansion: Investing $500 Million in Mining Ventures in the Next Six Months
Data from DefiLlama shows that the TVL in DeFi protocols across various chains, which was just under $36 billion in mid-October, has now rebounded to $52.9 billion. This marks a significant 48% increase since October, signaling a recovery from a drastic 80% fall from the November 2021 peak.
Growth in Public Chain Protocols
Public chain protocols have also seen notable growth. Sui’s TVL, after reaching $100 million last month, has continued to rise, now surpassing $200 million. Additionally, Layer2 Blast has been hitting new highs. As per DeBank’s data, Blast’s contract address now locks assets worth over $1 billion, including nearly $900 million in ETH deposited in the Lido protocol and over 100 million DAI in MakerDAO.
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Keywords: Tether, USDT Issuance, Ethereum, Stablecoin Market Growth, DeFi Bull Market, Total Value Locked, Public Chain Protocols, Crypto Market Trends, Ethereum Network, DeFi Protocols
