Following multiple users’ requests, leading stablecoin issuer, Tether has announced that it will move $1 billion worth of USDT from the TRON blockchain to Ethereum.
Tether made this known in an announcement today, stating that the “chain swap,” scheduled to take place tomorrow, September 15, will be conducted in two tranches.
According to the announcement, the stablecoin issuer noted that the overall operation would see it collaborate with an undisclosed “3rd party” exchange to facilitate the move.
“Tomorrow, Tether will coordinate with a 3rd party to perform two chain swaps (conversion from Tron to ERC-20 protocol) for 1B USDt,” the company said.
With the development, the total supply of TRON-based TRC-20 Tether tokens will reduce from $3.3 billion to $2.3 billion, thus increasing Ethereum’s ERC-20-based Tether supply to $9.5 billion.
This comes less than a month after Tether announced moving $1 billion worth of USDT tokens from the Justin Sun’s-led blockchain platform to Ethereum.
Tether USDT users prefer Ethereum
At the moment, Tether’s USDT is supported on eight different blockchains, including Algorand, Ethereum, EOS, Liquid Network, Omni, OMG Network, Solana, and TRON.
The Ethereum network is regarded as the largest value settler of the token, which has caused massive congestion for the network.
Recently, Tether has made a significant effort in reducing the congestion on the Ethereum blockchain by supporting blockchain projects like Solana and OMG Network (formerly Omise GO).
However, despite the variety of blockchains that support the stablecoin, users still prefer Ethereum over the others.
The reason is not far from the recent decentralized finance (DeFi) growth that has pushed the market prices of Ether (ETH) and other ERC-20 tokens prices higher.
Meanwhile, the recent DeFi surge unlocked a new milestone for Tether last month, as the stablecoin issuer recorded a new all-time daily trading volume of more than $3.55 billion.
Author: Lele Jima