Tether Powers Market Recovery After Crash

Tether Powers Market Recovery After Crash

 

After a sudden weekend market crash triggered by macroeconomic news, particularly the announcement of new tariffs by former President Trump on China, Tether and Circle took decisive action to inject liquidity into the cryptocurrency market. Tether, the largest stablecoin issuer globally, minted a substantial $1 billion in new USDT tokens on the Ethereum blockchain on October 11. Simultaneously, Circle issued $750 million in USDC tokens on Solana, adding to the market’s available stablecoin supply. Analysts interpret these moves as strategic actions by Tether and Circle to stabilize market sentiment and provide traders with the liquid assets needed to purchase digital currencies at discounted prices following the downturn.

Market data shows that Tether had already minted $775.8 million in USDT on October 10, followed by an additional $771 million on October 11. This massive issuance by Tether represents one of the largest single bursts of stablecoin creation in recent months and highlights Tether’s crucial role in the digital currency ecosystem. With these new tokens, Tether’s total supply now reaches an impressive $180 billion, with $80 billion circulating solely on Ethereum. Tether’s dominance as a stablecoin provider remains evident, and its influence in market stabilization during periods of high volatility cannot be understated.

Meanwhile, Circle’s USDC issuance totaling $750 million expanded the stablecoin’s total supply on the Solana network to $12.84 billion, while its global supply rose to nearly $75 billion. The timing of Tether and Circle’s actions was particularly important, as the crypto market had experienced significant losses. On Friday, leveraged positions across major cryptocurrencies, including Bitcoin and Ethereum, declined by approximately $20 billion, creating a rapid cascade of liquidations and wiping out gains from earlier in the week.

The introduction of billions in stablecoins by Tether and Circle provided a safe harbor for market participants, enabling them to retain capital in a stable form rather than exiting the crypto space entirely. Analysts view Tether’s repeated issuance as an intentional strategy to ensure liquidity remains available for traders ready to buy high-value assets at reduced prices. Shortly after the crash, Ethereum-focused investment firm Bitmine acquired approximately 128,700 ETH, valued at $480 million, using funds withdrawn from trading platforms. This movement illustrates how quickly capital can flow back into the market when Tether and Circle inject liquidity.

Ultimately, the swift and significant issuance of new USDT by Tether, coupled with Circle’s USDC minting, demonstrates the resilience of the cryptocurrency market. Tether’s role as a stabilizing force during market turbulence is unmistakable, ensuring that traders have access to secure, liquid assets for strategic positioning. Even in times of sharp macro-driven corrections, Tether remains central to restoring confidence and facilitating continued investment in top digital currencies.


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