Key takeout
Why does Tether Mint New USDT Token Mint?
Tether mints new USDT for increased liquidity, backed by comparable Fiat reserves, maintaining 1:1 peg in USD.
Why is Ethereum a network that prioritizes USDT issuance?
Ethereum’s ERC-20 tokens integrate seamlessly with exchanges, wallets and Defi platforms, allowing for efficient movement of capital and fast trading.
In a notable development, whale alert revealed that Tether Treasury has cast 1 billion USDT at Ethereum [ETH] Blockchain UTC+8 at 10:22am.
This was a major addition to Stablecoin’s distribution supply, totaling about $10.03 billion.
By creating a new ERC-20 USDT token, Tether has increased its total supply of Stablecoin. This is usually supported by comparable Fiat reserves to maintain 1:1 peg in USD.
This liquidity injection provides more capital to trading, lending, and other cryptographic activities, potentially increasing the increase in demand from exchanges, debt platforms, or institutional investors.
Why Ethereum?
Ethereum remains a network that is prioritized for USDT issuance thanks to its robust ecosystem, smart contract capabilities and widespread adoption.
This is because ERC-20 tokens like USDT will benefit from seamless integration between exchanges, wallets and debt platforms, allowing for efficient transfer of capital.
Additionally, Ethereum’s choice increases high liquidity and enables faster trading with both centralized and decentralized finance protocols.
Ethereum itself has experienced important activities along with this Stablecoin Minting.
Cryptocurrency has recently reached a price of $4,500, but Ethereum ETF is regaining traction among investors.
Meanwhile, the network saw its biggest code upgrade since the merge a few months ago. This is a Pectra upgrade released on May 7, 2025.
This “2-to-1” upgrade has implemented 11 Improvement Proposals (EIPs) aimed at combining the Prague run layer and the Electra Consensus layer to improve the experiences of users, stakers and developers.
USDT vs USDT
On the other hand, on-chain analysis highlights the scale of the activity. USDT recorded a transaction volume of $4841.7 billion, exceeding $31.92 billion.
Source: VisaonchainAnalytics
This coincided with Solana’s recent USDC mint, complementing the massive USDT issue of Tether’s Ethereum, highlighting the growing demand for stability liquidity across multiple blockchains.
In a circle that adds 250 million USDC to Solana [SOL]total supply surged from just $2.5 billion to $10 billion.
These developments underscore the role of stubcoins in fostering the growth of transactions, lending and receivables and strengthening the critical blockchain position of Ethereum and Solana.