Ethereum Takes Tether Supply Position, Undefendable

Ethereum is a global open source platform for decentralized applications. On Ethereum, you can manage digital assets and run programs by writing code, and more importantly, all of this is not subject to geographical restrictions.

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Source: Share of USDT transaction value by protocol

If you look closely, compared with the Omni protocol, Tether issued based on the Ethereum network has faster confirmation time, faster exchange withdrawal and deposit time, and lower handling fees. These advantages promote Tether to the Ethereum protocol. Transition.

Anthony Sassano, founder of Ethereum data intelligence firm EthHub, pointed out that the Ethereum network is a better payment method for Tether and other stablecoins.

Paolo Ardoino, Tether's chief technology officer, pointed out that transaction fees and confirmation times were the main reasons for Tether's migration to Ethereum, and it was also at the request of traders.

While seeing these developing trends, it is important to understand the implications and changes they may bring. It is a well-known fact that Tether currently holds the lion's share of the supply on the Ethereum network. While this is good for Ethereum to demonstrate its value as infrastructure, it also increases Ethereum’s fees. In fact, if this situation continues, USDT may replace Ethereum, but it is currently difficult to surpass.

According to Tokenview data analysis, a total of 157 million USDT was newly issued through the Tether Treasury address. Ethereum and TRON have become the main public chains for the newly issued USDT, accounting for 71.34% and 27.85% respectively, and Ethereum still occupies a dominant position.

Asset management firm Grayscale reported that the Ethereum Trust’s assets under management grew from $11.7 million to $276.5 million, a 23.6-fold increase despite the lower price of Ethereum.

And, Gas usage on Ethereum has reached an all-time high. This shows that user activity levels on the Ethereum blockchain network are skyrocketing in anticipation of Ethereum 2.0.

All in all, Tether's migration from the Bitcoin blockchain may be the reason, but considering the current rapid development, Ethereum is still the best choice. As for what problems may arise in the future, and whether Tether will eventually migrate to a different chain again superior. We will wait and see.