Tether Treasury has minted another $1 billion on Ethereum, bringing its total issuance over the past year to 23 billion USDT.
This latest minting event has triggered significant transfers of USDT to major centralized exchanges, signaling possible shifts in market liquidity and investor sentiment. Crypto surveillance platform Spot On Chain called attention to these movements in a recent update.
Cumberland’s Role in USDT Transfers
After the minting, Tether transferred 183.2 million USDT to Cumberland, a trading firm. Notably, Cumberland has been actively moving USDT into various centralized exchanges (CEXs), with a total of 953 million USDT received from Tether since the market crash on August 5, 2024.
Notably, Cumberland has injected 906.7 million USDT into prominent exchanges like Coinbase, Kraken, OKX, Binance, and Bullish post-crash. The largest recipient, Coinbase, received 106.07 million USDT in the last 24 hours, accumulating a total of 468.96 million USDT from Cumberland since August 6, 2024.
Kraken followed with 64.13 million USDT deposited in the past 24 hours, amounting to 207.58 million USDT overall. Despite no recent deposits to Binance and Bullish, they have received 81.64 million USDT and 32.00 million USDT, respectively, since August 6. This activity highlights Cumberland’s strategic role in distributing USDT stablecoin across major liquid platforms.
Bitcoin Traders Eye Stablecoin Inflows
Amid these developments, Bitcoin traders are closely monitoring stablecoin inflows, which are seen as potential indicators of market movements. 10x Research, a digital asset research firm, noted that the $2.5 billion stablecoin inflow, including the recent $1 billion USDT mint, could have a bullish impact on Bitcoin.
They emphasized the importance of tracking these money flows, as they can act as tailwinds or headwinds for cryptocurrency prices. The firm pointed out that a significant portion of the USDT and Circle-issued stablecoins last week could suggest fresh capital entering the market, potentially leading to further price gains if this trend continues.
The Minting is a Pattern
The recent USDT minting event on Ethereum follows a similar pattern observed in July when Tether minted 1 billion USDT on the Tron Network. Historically, such large-scale minting activities have influenced Bitcoin and other crypto’s price movements.
Previous instances, such as the March minting of 3 billion USDT, were followed by extended bullish trends. Data from CryptoQuant indicated that the circulating supply of USDT has increased by 30 billion since late 2022, contributing to improved market liquidity and investor confidence.
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