Tether announced that it has unfrozen $1.45 million worth of USDT held in four THORChain vaults on the TRON blockchain. The freeze, which had disrupted trading and liquidity functions, was lifted three hours after it was implemented. The remaining 19 blockchain addresses that were previously frozen remain locked.
Background on the freeze
Earlier, Tether had frozen four USDT vaults on THORChain, affecting the stablecoin’s cross‑chain liquidity on the TRON network. The freeze restricted access to the $1.45 million held in those vaults, creating a temporary bottleneck for traders using the network.
TRON’s role in USDT transfers
Data from Lookonchain shows that USDT supply on TRON grew by $18.67 billion over the past year, reaching $94.25 billion – an increase of 24.7 percent. The sizable USDT presence on TRON means that interruptions to liquidity can have a noticeable impact on market participants.
Implications of the unfreeze
Unfreezing the four vaults restored the affected liquidity operations, allowing cross‑chain transactions to resume. While the action alleviates an immediate liquidity constraint, it does not guarantee additional buying pressure or broader market effects.
Market context
At the time of the unfreeze, stablecoin market cap continued to rise for a third consecutive day, though overall inflows were limited. USDT dominance had slipped below the mid‑September resistance level of 6.7 percent, indicating a shift in liquidity dynamics.
The unfreeze is viewed as a step toward normalizing liquidity conditions, but analysts note that further market movement will depend on broader investor behavior.
