Tron thought they had everything under control until Tether decided to move a billion dollars in USDT from its Blockchain to Ethereum. Stiff competition?
Tron vs. Ethereum
Yesterday, Tether ad through Twitter that they would be coordinating a blockchain change (a conversion from Tron to the ERC20 protocol) for a total of one billion USDT. They also ensured that the total supply of Tether would not be affected.
In this regard, the transfer drained 23% of the USDT reserves found in TRON, where previously $ 4.3 billion was stored in the stablecoin.
Is Binance behind all this?
The Block reported that Paolo Ardoino, CTO of Tether, assured that a crypto exchange was willing to exchange part of its USDT from TRC20 (Tron) to ERC20 (Ethereum). However, Ardoino did not share the name of the crypto exchange with the media.
However, the clues could be pointing to Binance, one of the largest crypto exchanges in the industry, given that yesterday Whale Alert reported that 600,000,000 USDT had been transferred from Binance to Tether Treasury.
Although the clues point to Binance, we cannot yet generate hasty conclusions. Since the crypto exchange has not issued any statement.
Ethereum displaces Tron
The news is more relevant than you might think. And the recent DeFi boom has been pushing Ethereum to new levels, leaving others in the past.
The move implies that Tether has decided to reduce its supplies of USDT in Tron-based TRC20 tokens from $ 4.3 billion to $ 3.3 billion. While increasing the supply of USDT in Ethereum ERC20 tokens to $ 8.5 billion.
Likewise, a fact to take into consideration is that, in general, these types of movements occur when the users who operate the crypto demand to operate on one Blockchain instead of the other.
Could Ethereum be imposing a new level of competition in the crypto market? Does Tron have something to do? Without a doubt, the growth of DeFi is revolutionizing the crypto industry.