The Tether Treasury has minted $540 million of its US dollar-backed stablecoin in the last three days, as Bitcoin’s price rallied above $11,000.
According to Whale Alert, $300 million was created today on the Tron network, after two previous mints of $120 million on Ethereum in the past three days.
Crypto exchange Bitfinex and Tether CTO Paolo Ardoino explained on Twitter that the transactions were to replenish the inventory, in preparation for more demand.
“Note this is a (sic) authorized but not issued transaction, meaning that this amount will be used as inventory for next period issuance requests,” he said.
Tether is the most commonly used stablecoin with a market cap of $10 billion. Its value is pegged to the US dollar, enabling it to avoid the price fluctuations typical of most cryptocurrencies.
As Decrypt reported, Bitcoin broke the $10,000 and $11,000 marks on July 26–27, driving the crypto market into a strong rally. As a result, trading volumes have doubled and Bitcoin is being pumped back into exchanges. It’s no wonder that demand for Tether is on the rise.