Paolo Ardoino, CTO at Tether CTO, announced via Twitter that a staggering 2 billion USDT will be transferred from Tron to the Ethereum network if USDC is integrated into the Stellar network
Despite the frequency with which these transfers take place, this specific transfer has been the largest amount ever migrated from Tron to Ethereum as it represents about 20% of the USDT circulating in Tron prior to the transfer.
After the transfer, Ethereum has a total circulation of $ 18.3 billion, while Tron has $ 8.3 billion, according to Tether’s transparency page.
USDT has been the most popular stablecoin since its inception and has had a significant impact on the activity of the networks they offer.
Currently, USDT is available in Ethereum, Tron, Omni, EOS, Liquid, Algorand, SLP and Solana. The total supply is over $ 27 billion, mostly on the Tron and Ethereum networks.
Tron’s USDT trading volume outperforms Ethereum
In the past 3 weeks, the number of USDT transactions on the Tron network has exceeded the number of Ethereum. Ethereum processes around 1.5 million transactions while Tron processes nearly 2 million transactions.
The driving forces behind this surge in popularity for the Tron network appear to be the lower fees and the time it takes to process transactions. Ethereum gas prices remain high by $ 8 just a week after hitting $ 19.
While the total value of the USD moved by Ethereum is greater than that of Tron, Tron’s growing popularity with smaller transactions continues to grow, as Ethereum’s fees are only justified on large transactions.
These concerns about high fees have plagued the Ethereum network since the DeFi boom in 2020, driving applications and users away as it becomes impossible to pay for small transactions, as in the case of blockchain games, which saw activity plummet in 2020 .
Blockchains like Polkadot, Cardano, and Tron quickly took advantage of these problems by offering scalable solutions designed to offer higher performance at lower fees. However, only time will tell if Ethereum 2.0 will be able to ensure Ethereum’s continued dominance.
More stablecoin Switch to new blockchains
The Stellar Development Foundation announced on February 2nd that USD Coin (USDC), the second most popular stablecoin, had been successfully integrated into the Stellar Network. Originally announced in October 2020, the integration of crypto investors was eagerly awaited.
The USD coin has more than doubled its total supply in the past three months, reaching a circulating supply of $ 6 billion, according to CoinMarketCap. Since its inception, it has had a total transaction value of $ 373 billion.
New additions to Stellar
The addition of USDC to the Stellar network is a major milestone for the blockchain as it will be the first major stable coin to support the network.
This integration is likely to attract users to the stellar network by enabling them to invest and operate by facilitating cross-border payments and hedging strategies.
“Getting a strong, stable asset into the star is critical. We want to get cross-border payments done quickly, this will help increase the scale, ”stated Denelle Dixon, CEO of the Stellar Development Foundation.
Other factors driving the increasing popularity of stablecoins in recent weeks include the announcement by the OS Office of the Comptroller of the Currency that US banks are now allowed to use stablecoins to perform bank-approved functions.
This led to a surge in Stellar’s cryptocurrency and a doubling of USDC supply as Visa revealed its intention to use USDC to connect its global payments network with over 60 million merchants and the introduction of stablecoin as an alternative to fiat currencies in everyday life Facilitate situations.