The Impact of USDT Supply Changes
USDT’s circulating supply fluctuates based on market demand. When demand increases, Tether issues more USDT tokens, while redemptions reduce supply. These supply changes can have a notable impact on the crypto market, as large issuances are often associated with increased liquidity and bullish sentiment. Conversely, a significant reduction in USDT supply may indicate market uncertainty or declining demand for crypto assets. Traders and analysts closely monitor USDT supply movements as a potential indicator of future market trends.