The crypto machine with token dollars has rolled up. In the wake of the 25 base drop -down points decided by the Fed on September 17, Tether accelerated the emission of USDT. In total, 5 billion struck in eight days, including an additional 1 billion on September 19 on Ethereum, according to Onchain Lens. Timing is not by chance: when the cost of money is retreating, the thirst for liquidity in the crypto markets goes back instantly.
In short
- Tether issued USDT 5 billion in eight days, reacting to the drop in Fed rates.
- This massive injection anticipates a boost of appetite for the risk on the crypto markets.
- The rebalancing between Ethereum and Tron reflects pragmatic dynamics between cost and market depth.
A strong signal for the crypto markets after the Fed
The first monetary relaxation in 2025 clarified the situation: the Fed now favors Risk Management in the face of a weakening market. Translation on the digital active ingredients: more margins, more appetite for risk, so more Dry Powder in Stablecoins to supply the order books. This goes in the direction of Coinbase analyzes. Desks are still preparing there before everyone else.
In this context, Tether's rate becomes a crypto indicator in itself. The 5 billion struck in eight days, with a new billion on Ethereum on September 19, point to a repositioning of investors before the next Macro meeting. It's fast. And it's intentional.
Important shade, however: part of these amounts can be of the famous “Authorized But not Issued” (tokens struck on the cash side to serve as a stock, not yet injected into circulation). This mechanism, detailed several times by Paolo Ardoino, avoids interpreting each Mint as an immediate net entry on the Crypto market.
Where do tokenized dollars go? Rebalancing between Ethereum and Tron
The last wave Slightly rebatted the cards between chains. According to the aggregated data of Defillama, taken up by the specialized press, Ethereum now hosts around 81 billion USDT (≈ 45 % of the offer), ahead of Tron at 78.6 billion (≈ 43.7 %). This tilting is not trivial: when the activity DEFI SUR ETH warms up, the USDT request issued on Ethereum (ERC-20) goes back mechanically.
Why does this come and go? Tron keeps the advantage of a minimum transaction cost, decisive for retail (general public) and transfers between Exchanges. Ethereum concentrates the composability and depth of the institutional deffi. As soon as the yields are widen or the perpetual contracts move from flows via bridges, the needle leaves towards ETH. It is cyclical, and it is above all pragmatic.
Above this microgeography, the macro: the Stablecoins market weighs around 290 to 293 billion dollars, and the USDT remains the “elephant at the center of the room” with ~ 172 billion, or almost 59 % of market share. This domination structures the spreats, access to liquidity and risk transmission speed in the crypto ecosystem.
Market consequences: liquidity, spreats and discipline
Concretely, a rapid expansion of USDT is first reflected in better depth on the CEX order books and a compression of the spreats on the pairs labeled in Tether. The basis on long-term contracts can recover upwards, especially if cash-And-Carry arbitration is resets after the Fed's decision. The flows are then seen in the metrics for the deposit of the Exchanges and on the inter-chain bridges.
Practico-practical strategy: monitoring the trajectory of large strikes from Tether Wallets to major platforms. If the tokens remain on the cash side (“Authorized but not Issued”), the effect on prices is more diffuse. If they quickly migrate to addresses associated with exchanges, the impact on spot liquidity and perpetual contracts is generally more direct. Do not confuse operational stock and immediate buying pressure.
On the adoption side, Tether claims a solid traction: more than 3.5 million new portfolios holding at least 1 USDT over 90 days, or near the triple of the cumulative growth of competitors, according to Paolo Ardoino. This confirms the role of USDT as a gateway and liquidity refuge in the agitated phases. But keep the belt attached: the concentration of the Stablecoins market also creates a systemic dependence. Diversify your stables in stable, segment by use (payments by the collateral vs) and monitor the gaps in PEG remain healthy reflexes.
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