Tether Prints $5B USDT Amid Fed Rate Moves: Crypto Demand?
Tether Increases USDT Supply by $5 Billion Following Fed Decision
Tether has minted $5 billion in USDT over the past week, signaling potentially increased demand for digital assets in the wake of the U.S. Federal Reserve's recent interest rate cut.
On September 19th, Onchain Lens reported that Tether created another $1 billion USDT on the Ethereum network. This follows the $4 billion minted in anticipation of the Federal Open Market Committee (FOMC) meeting on September 17th.
During that meeting, Federal Reserve Chair Jerome Powell announced a 0.25% reduction in the benchmark interest rate, the first cut of 2025. This move, intended to lower borrowing costs, is often viewed as a positive catalyst for risk assets, including cryptocurrencies.
Stablecoins like USDT can benefit from such conditions, acting as both an entry point into the crypto market and a safe haven during periods of volatility.
USDT Distribution Across Blockchains
The recent minting activity has shifted the distribution of USDT across different blockchains.
- Ethereum: Now holds $81 billion worth of USDT, representing 45% of the total circulating supply.
- Tron: Holds $78.6 billion, accounting for 43.7%.
- Smaller allocations are present on Binance's BNB Chain and Solana.
This distribution reinforces Tether's position in the stablecoin market. With a supply of $172 billion, USDT alone represents nearly 59% of the total $292.6 billion stablecoin sector.
Tether CEO Paolo Ardoino has highlighted the growing adoption of USDT, noting that over the past 90 days, more than 3.5 million new wallets have started holding at least $1 of USDT. This is nearly triple the combined growth of its competitor stablecoins.