According to Cointelegraph, Tether has minted $1 billion in Tether-US dollar (USDT) stablecoins on the Tron network without incurring any transaction fees. This significant transaction was highlighted by onchain analytics firm Arkham Intelligence, which noted the movement from a 'black hole address' on Tron to Tether's multi-signature wallet. Following this, the funds were transferred to Tether's Treasury, also without fees.
The Tron network's low transaction fees have made it an attractive option for stablecoin firms, particularly in developing countries where high fees can diminish the value of payments or remittances. Tether's transparency page indicates that the total USDt authorized on the Tron network is $62.7 billion, closely rivaling the $62.9 billion on the Ethereum network. Despite Ethereum's larger ecosystem, Tron's comparable USDt circulation contributed to its $577 million revenue in Q3 2024.
In August 2024, Tron became the second-largest blockchain ecosystem by stablecoin market share, holding 37.9% compared to Ethereum's 55.7%. During this period, Tether minted another $1 billion USDt on Tron. Tether CEO Paolo Ardoino clarified that these tokens were authorized but not issued, intended to replenish the supply. These tokens remain in inventory until a new issuance request is made, at which point they are released to the market.
Stablecoin supply is often used by digital asset traders to assess market sentiment and investor interest. An increase in newly minted stablecoins typically signals bullish market speculation, while a decrease suggests reduced interest and activity.
