Victor Ugochukwu · Dec 14, 2020 . 5min read
Tether to Swap $1B USDT from TRON to Ethereum
Tether's transaction counts have been on the rise averaging 333,000 per day in August.
By Victor Ugochukwu · Aug 20, 2020 . 5min read
Top stablecoin platform Tether just announced it would be conducting a swap of $1B USDT from TRON network to Ethereum.
In a recent tweet, the stablecoin says the swap between the two chains will happen in a few hours. It also says it will be coordinating with a third-party to carry out the migration.
As a further explanation to those who may not understand what a chain swap is, Tether added a resource link in the tweet to help their curiosity. Basically, a chain swap is a process of moving cryptocurrencies from one blockchain to another. As is the case with this newest Tether update. However, it will typically not affect the supply of that cryptocurrency. This is because as chain migration, token burns follows immediately to keep supply fixed.
Meanwhile, Tether just a few hours before had announced it has successfully integrated Omisego network as the Layer 2 solution to help with the Ethereum network decongestion.
You can check out the Stablecoins growth outlook in 2020: A report
Evidently, Tether’s usage across several networks has spiked in the last months amassing up to $10B market cap after its valuation doubled within five months from $5B to $10.
As the leading stablecoin, its transaction counts have been on the rise averaging 333,000 per day in August. For context, USDC transfer count hovers around 28,000. Dai is approximately 15,600 while Pax stablecoin is just 1,300 transaction.
With Tether’s swap from TRON to ERC20, Ethereum still enjoying tremendous support regardless of its fee spike.
Ethereum fees are scarily high at the moment. However, even at its present state, it’s still enjoying colossal community support, especially with readily available Layer 2 solutions coming to its rescue—this help to decongest the network by moving transactions to sidechains. Scores of layer two solutions like Matic, Omisego, Raiden, Skale, etc., abound, while Ethereum keeps making to transition to PoS.
At the moment, Tether is available across six chains, but the bulk of its transaction counts happen on Ethereum. Even though Tether’s users need fast transactions times as well as cheap transfer cost this swap from USDT TRON to ERC20 shows the latter has not been able to maintain a grip on Tether as a competition to Ethereum.