5 Reasons Behind Tether’s 1 Billion USDT Print on Ethereum: What’s the Impact on Crypto and DeFi?

Updated

September 26, 2025

Gambar 5 Reasons Behind Tether’s 1 Billion USDT Print on Ethereum: What’s the Impact on Crypto and DeFi?

Jakarta, Pintu News – On September 26, 2025, the crypto world was shocked by news from Whale Alert: Tether Treasury printed 1 billion USDT on the Ethereum network in one large transaction. The move instantly sparked discussions about market demand, liquidity, and Ethereum’s role in the global stablecoin ecosystem. Here’s the full explanation.

1. Tether Boosts Liquidity with 1:1 Fiat Reserves

Reported by AMBCrypto, this printing was done to increase the supply and liquidity of USDT backed by equivalent fiat reserves, in order to maintain a stable exchange rate of 1:1 against the US dollar.

This large printing of USDT signals increased demand, both from crypto exchanges, DeFi platforms, and financial institutions. With a value of around $1.003 billion or equivalent to IDR16.8 trillion (exchange rate USD 1 = IDR16,763), this injection strengthens USDT’s position as the most liquid stablecoin in the world.

Also Read: 5 Big Impacts of US Crypto Regulation: Novogratz Predicts Market Cycles Will Change Forever

2. Ethereum Chosen for Dominant DeFi Ecosystem

Tether chose Ethereum as its issuance network due to the advantages of the ERC-20 ecosystem that is widely compatible with exchanges, digital wallets, and DeFi protocols. This decision is not new-Ethereum has long been the primary network for USDT issuance due to its stability.

According to reports, ERC-20 tokens enable fast and efficient capital movement between DeFi and CeFi platforms, accelerating transaction execution with minimal fees and latency amid high volumes.

3. Support for DeFi and Institutional Demand Increases

As more institutions and DeFi platforms use stablecoins as collateral, the additional liquidity from this minting will support lending, derivatives trading, and yield farming.

On-chain data shows that USDT transaction volume has reached $484.17 billion, far surpassing the US dollar transaction volume on the blockchain which stands at $319.20 billion. This reflects a major shift in the way capital flows in the digital age.

4. Ethereum Upgrade Boosts Market Confidence

This USDT minting momentum also coincides with positive activity on the Ethereum network, including the increase in ETH price to the $4,500 level and the launch of a major upgrade called Pectra in May 2025.

This upgrade combines two main layers: Prague execution layer and Electra consensus layer, and brings 11 Ethereum Improvement Proposals (EIPs). The goal is to improve staking efficiency, application development, and user experience, making Ethereum even more attractive to stablecoin issuers like Tether.

5. Competition with USDC in Solana Triggers Liquidity Competition

Tether’s move comes amid massive minting by Circle, the USDC issuer, which just minted 250 million USDC on the Solana network. The total supply of USDC on Solana jumped from $2.5 billion to $10 billion in just the last few weeks.

This phenomenon signals a battle between major stablecoins to dominate the cross-blockchain DeFi liquidity market. Ethereum and Solana are now neck-and-neck as the highest-volume stablecoin issuance and transaction bases.

Conclusion

Tether’s minting of 1 billion USDT on Ethereum is a strong signal that demand for stablecoins and liquidity in the crypto market continues to rise. This move reinforces Ethereum’s dominance in the DeFi sector, even amid competition from networks like Solana. On the other hand, it also confirms the strategic role of stablecoins in driving digital economic activity, from commerce to decentralized finance.

Also Read: 7 Astonishing Facts: Number of Crypto Billionaires to Rise 40% by 2025, Who Benefits?

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