- The largest issuer of stablecoins again loads the Ethereum network with assets.
- The community has divided opinions regarding the correctness of the decision.
- Ethereum remains a monopoly for Tether despite the support of other blockchain networks.
- The cryptocurrency community associates transfer with high demand from the community on the Ethereum blockchain.
Tether, the largest stablecoin issuer by market capitalization, has announced the withdrawal of 1 billion USDT tokens from the TRON blockchain to Ethereum.
The company announced this on its Twitter page.
“The total supply of Tether will not change as a result of this process,” the company said.
Not everyone in the cryptocurrency community supported this decision. Some noted that loading the Ethereum network with new tokens amid skyrocketing transaction fees is at least strange. At the same time, other users believe that such a large transaction may mean that the stablecoin is in demand on the Ethereum network, and not TRON. This view is supported by the reporting of stablecoin fees based on the TRC20 protocol.
According to statistics from the blockchain observer TRONSCAN, the Tether smart contract ranks only ninth in terms of spending on the TRON network.
At the same time, according to the Etherscan service, which monitors activities within Ethereum, Tether ranks second, behind only the Uniswap decentralized cryptocurrency exchange protocol.
In addition to Ethereum and TRON, Tether has already launched a stablecoin on the Algorand, EOS, Liquid Network, OMG Network, Omni, Solana blockchains, as well as the Standard Ledger protocol supported by Bitcoin Cash. However, none of the above projects have yet managed to achieve at least half of Ethereum’s activity.
The Ethereum blockchain has always been positioned as a sandbox for other ecosystems, which may explain its popularity. The surge in popularity of the decentralized finance (DeFi) market has spawned hundreds of new projects based on Ethereum, which triggered a market-scale loss of profit syndrome, and Tether has become a kind of bridge connecting various ecosystems.
Nevertheless, there are those who predict the sad outcome of Tether’s monopolization. For example, renowned analyst and trader Peter Brandt believes that Tether will face the same fate as many traditional fiat currencies.
“Tether is a dubious fiat currency that will suffer the fate of all fiat currencies, or worse. The outcome will not be pleasant,” Brandt wrote on his Twitter page.
Brandt has long been an adherent of traditional technical analysis of cryptocurrencies, which has not always worked properly.
At the beginning of 2020, the analyst noted that while maintaining the parabolic growth curves, Bitcoin could reach $ 100,000 by 2021.
However, in March, amid the global turmoil from the coronavirus pandemic, Brandt said that in the event of a breakout of the $ 7,500 level, Bitcoin would collapse to $ 0.
In the same month, bitcoin collapsed to an annual low of $ 4,656, but the leading cryptocurrency did not fall to $ 0.