About $1 billion worth of US dollar-backed stablecoin, USDT will be transitioned from the Tron blockchain to Ethereum. The company behind the stablecoin, Tether, made this known in a tweet on Monday. The Tron community criticized the move at some point, noting that it will be too costly to transact with the stablecoins on the Ethereum blockchain.
Ethereum Will Receive $1 Billion USDT from Tether
According to the company’s announcement, one billion USDTs issued on the Tron blockchain will be moved to Ethereum by tomorrow. Given that the cryptocurrency is pegged 1:1 with the US dollar, this means that the total value of the USDTs on Ethereum will be increasing by $1 billion.
At the time of the report, a total of 8.8 billion USDTs has been issued on the Ethereum blockchain, while Tron has 4.75 billion USDTs. Tron has been a big rival of Ethereum’s success in the blockchain space. However, the transfer is definitely not a good one for the Tron community to cheer, as it somewhat signals more demand for the stablecoin on Ethereum.
Following the update from the company, they are going to coordinate with a 3rd party to make a two-chain swap conversion of the USDT from Tron to Ethereum as ERC-20 token. This will raise the number of USDTs on Ethereum to nearly 10 billion, although the entire total supply of the crypto will remain unchanged. The company tweeted:
“Tomorrow, Tether will coordinate with a 3rd party to perform two chain swaps (conversion from Tron to ERC20 protocol) for 1B USDt. Tether total supply will not change during this process.”
Tether USDT Growth
USDT has grown to become the largest and most traded asset in the stablecoin market. According to Coinmarketcap, about 14,709,331,641 USDTs are currently circulating, out of a total supply of 15,083,309,835 USDT. In addition, the stablecoin has a market cap of $14.7 billion, making it the third-largest cryptocurrency in the market.
Many Tron users disliked the news that USDTs on Tron will be moved to Ethereum. They cited that transferring the stablecoin to Ethereum will make them costly, following the increased transaction fee on Ethereum.