Why Ethereum will emerge victorious in the ongoing bull rally as Tether mints $2 billion USDT

  • Stablecoin issuer Tether minted a total of $1 billion USDT on March 15.
  • The company’s CTO, Paolo Ardoino, stated that this was inventory replenishment in case of a spike in demand.
  • Meanwhile, Voyager has offloaded 130,000 ETH over the past two months, continuing its selling spree.

Tether’s recent mint of a billion USDT tokens might have momentarily caused FOMO among participants, but crypto markets quickly came to terms after clarifications from its  CTO. Investors need to be cautious as matters could get dicey in the coming days due to the chaos caused by the collapse of traditional finance banks.

Also read: Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bullish momentum fades for BTC and ETH, XRP suffers SVB woes

Tether mints $2 billion USDT tokens

Tether minted a whopping $1 billion in USDT on Ethereum and TRON blockchains on March 15. The largest stablecoin’s market capitalization went from $72.1 billion to $74.6 billion between March 12 and March 14. 

Over the last few weeks, USDT seems to be taking the front and center stage but not because of a lawsuit or FUD, but because other US-based stablecoins are taking hits due to the collapse of three banks in the United States. 

To put things into perspective, Tether’s market capitalization has skyrocketed from $66 billion at the start of 2023 to $73.6 billion as of March 15, denoting an addition of more than $7 billion.

Tether’s CTO Paolo Ardoino clarified that the $2 billion minted on Ethereum and TRON blockchains were not issued transactions. He added,

… this amount will be used as inventory for next period issuance requests and chain swaps.

Voyager’s Ether selling spree coming to an end

The bankrupt crypto lender Voyager continues to offload its Ethereum holdings over the last few weeks. The latest sell orders suggest that the defunct company has sold a total of 130,000 ETH, worth roughly $220 million, valued at $1,700 per token. 

This leaves the crypto lender with 17,000 ETH, worth roughly $29 million at the current price levels. 

Voyager’s ETH wallet balance

Voyager’s ETH wallet balance

Also read: Ethereum holders could be in trouble if Voyager sells $151 million ETH in its holdings

Connecting the dots

With markets in turmoil, certain investors succumb to panic while others perceive the disorder and uncertainty as an opportunity. Binance CEO, Changpeng Zhao (CZ), seems to have taken the old adage, “never let a good crisis go to waste,” to heart as announced the conversion of $1 billion in Industry Recovery Fund into Bitcoin, Ethereum and Binance Coin. 

To recap, 

  • Tether has minted USDT anticipating future demand.
  • The selling pressure on the Ethereum price from Voyager nears an end.
  • The last and final piece of the puzzle is a combination of CZ’s stance and ETH’s deflationary aspect post-Merge.

Considering these aspects, one can conclude that the buying pressure, although not here yet, is waiting to be triggered. Ethereum has a special reason to rally quicker and higher than most cryptocurrencies due to the aforementioned facts.

Macroeconomics and conclusion

If macroeconomics is to be poured into the mix, investors will only get more bullish. The US year-on-year Consumer Price Index (CPI) print on March 14 was 6.0% as forecasted. It came in lower than January’s 6.4%, suggesting disinflation.

A reduction in inflation would ease the pressure on the US Federal Reserve to raise interest rates at a faster pace. As a result, investors might have already priced in the 25 basis points (bps) hike for March. If true, then the worst is behind us and the bull rally is ready to resume. 

However, not everything is certain, and things could change due to the chaotic nature of the markets and macroeconomic conditions. Therefore, investors should exercise caution even if they are bullish. 

Also read: US inflation rate comes in at 6%, meets expectations; Bitcoin price climbs above $25,000

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Crypto Today: Bitcoin, Ethereum and XRP what to expect as SEC executive says Howey test applies to cryptos

Crypto Today: Bitcoin, Ethereum and XRP what to expect as SEC executive says Howey test applies to cryptos

Bitcoin trades above $62,500 on Monday, sustains above key support as head of US SEC enforcement division says Howey test applies to cryptos. Ethereum and XRP trade above key support, extending gains by nearly 3% on the day. 

More Cryptocurrencies News

Ripple whales buy hundreds of millions of XRP tokens as the altcoin rallies

Ripple whales buy hundreds of millions of XRP tokens as the altcoin rallies

Ripple (XRP) noted the highest weekly gains in 2024 over the weekend as XRP holders celebrated the one-year anniversary of Judge Torres’ ruling in the SEC vs. Ripple lawsuit. XRP rallied to a peak of $0.5661 on Saturday, July 13. 

More Ripple News

Bitcoin surges past $60,000 as ETFs report $1.04 billion inflows last week

Bitcoin surges past $60,000 as ETFs report $1.04 billion inflows last week

Bitcoin breached above the descending trendline on Sunday and trades 3.5% up at $62,924 at the time of writing on Monday. On-chain data indicates a decrease in miners' selling activity, complemented by US spot Bitcoin ETFs recording $1.047 billion in inflows last week. 

More Bitcoin News

JasmyCoin price surges following partnership with NOWPayments

JasmyCoin price surges following partnership with NOWPayments

JasmyCoin price breaks above a descending channel, signaling a break in market structure from bearish to bullish. NOWPayments announces its partnership with JASMY in Japan. JASMY featured in a Forbes article for coins outperformed Bitcoin in the first half of 2024.

More Cryptocurrencies News

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin: Investors wonder if BTC troubles are behind

Bitcoin (BTC) stabilized around the $57,000 mark this week, while the German Government persists in transferring Bitcoin to exchanges. Concurrently, US spot Bitcoin ETFs have recorded inflows.

Read full analysis