USDT users move to Tron because of the high Ethereum fees and now, despite the controversies Tether is still the largest dollar-pegged stablecoin with about $25 billion in circulation so let’s read more in today’s Tether news.
There were more Tether-based transactions on the TRON blockchain are over the ones n Ethereum and but there are more Tether-based transactions on the TRX blockchain than on ETH every day so far in 2021. Despite the controversies, Tether remains the largest dollar-pegged stablecoin and combined with the volume of Tether transactions on ETH being double the value of the ones processed on TRON.
Tether’s transactions are increasing but in a different place than you would think. The high fees on ETH seem to be pushing people to use TRON are make transfers of Tether which is the world’s most popular stablecoin which is why USDT users move to TRON. There were more Tether transactions on the TRX blockchain rather than the one of the Ethereum blockchain every day so far in 2021 according to blockchain data provider CoinMetrics. This is in spite of Ethereum housing about 50% more USDT tokens than the TRON blockchain. This could be a warning sign that the fees will increase crypto traders to alternative blockchain threatening ETH’s position as the de facto center of the crypto trading universe.
Founded in 2014, Tether provides dollar-pegged stabelcoins on blockchains like Solana, Ethereum, and TRON. Stablecoins are used by crypto traders as stable assets like cash and also as a means of moving out the positions in volatile cryptocurrencies. They will make crypto transactions easier by providing the familiar currency unit for settling the debt or reporting the interest rates. Tether is the biggest provider of stablecoins that has a circulating supply of about $25 billion which is a figure that increased about 4 times in 2020. Tether claims that all of the Tether tokens are 100% backed by cash but the skeptics are questioning this assertion which is why Tether is still controversial and remains the subject of the lawsuit in New York, over the alleged cover-up of lost $800 million in customer funds.
The transaction fees on ETH remained high at an average of $6 per transaction and they went above this level a lot of time during 2020. The transaction fees on ETH started rising above the historic levels in 2020, thanks to a boom in the ETH-defi space which aims to replicate financial services such as loans, swaps, and interest on customer deposits via centralized networks and using smart contracts. Tron fees, on the other hand, amount to fractions of a cent per transaction.
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Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
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