An additional $1 billion in Tether USDT stablecoins will leave TRON for Ethereum in less than a month from the first shift on the ETH network on behalf of the unnamed client. In today’s Tether coin news, we can see that the move will reduce the supply on the blockchain of TRX to less than $4 billion.
The additional $1 billion in Tether stablecoins will be moved from Tron to the Ethereum blockchain and the move will reduce the supply on the TRX blockchain to less than $4 billion. Tron launched some Defi applications of its own to compete with Ethereum but there wasn’t enough to stall the USDT chain swap.
Tomorrow Tether will coordinate with a 3rd party to perform two chain swaps (conversion from Tron to ERC20 protocol) for 1B USDt.
Tether total supply will not change during this process.
Read more here: https://t.co/abfgnELSvi
— Tether (@Tether_to) September 14, 2020
The largest stablecoin provider in the crypto ecosystem announced that it will work with a third-party client which is still an undisclosed exchange to move about $1 billion worth of tethers from the Tron blockchain to the ETH blockchain. This is the second time Tether performs such an auction in the past 30 days. The loss of the second billion in USDT stablecoins for Tron came as the Defi products on ETH recover from the recent downturn in locked value which earned back more than a billion dollars in less than a day between September 13 and September 14 according to the data from DeFi pulse.
DeFi protocols make heavy use of the stablecoins such as Tether and Coinbase’s USDC as they are pegged to the US dollar they provide a safe harbor against volatility that is found in the digital assets such as ETH and BTC. Being pegged to the dollar allows loans and financial instruments denominated in stablecoins to be able to function and to be paid in traditional bank-based finance which makes it easier to acquire new users and to track investments that use traditional metrics.
— Whale Alert (@whale_alert) September 14, 2020
Tron could be making waves with entries into the DeFi ecosystem but so far it hasn’t managed to convince exchanges to keep the TRX-based Tethers on hand. The chain swap moves Tether tokens from one blockchain to another without having to change the amount of USDT in existence overall. These swaps are the result of customers anticipating the need for stablecoin liquidity on the blockchain and receiving tokens in advance by adjusting the supply as the demand requires.
There are now more than $4.7 billion Tether on the TRX blockchain according to TRONScan. This is about $4.3 billion recorded before a similar chain swap transaction. The swap will reduce the total to $3.7 billion while increasing the ETH-based USDT supply to more than $9.8 billion.
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