After the 750 million chain swap executed by Tether just three days ago, here is another 1.25 billion USDT being transferred from Tron’s blockchain to that of Ethereum.
In recent days, the Lugano-based issuer of the stablecoin seems to be very active on the interoperability front, while the USDT cryptocurrency is poised to set new all-time highs and gain new market share.
Full details below.
Tether and the 1.25 billion USDT chain swap
News just came in these hours of a new chain swap of USDT by Tether, which will take place through the use of third-party intermediaries to transfer $1.25 billion from the Tron network to the Ethereum network.
The move of USDT from one blockchain to another serves to diversify the cryptocurrency’s presence within the various Web3 ecosystems, providing greater liquidity and accessibility to credit.
Sometimes it might be a customer of the Tether infrastructure or the Bitfinex cryptocurrency exchange itself that requests the transfer due to operational needs.
The presence of third-party parties in this context serves to ensure asset stability and to avoid creating liquidity problems on either chain involved in the process.
When transferring large countervalues of assets, as in this case, one cannot choose to use a trivial cross-chain interoperability bridge because the liquidity within it would certainly not be sufficient to guarantee the success of the transaction.
It is worth noting that during chain swaps, the circulating supply of USDT (and thus also the marketcap) remains unchanged, as no new stablecoins are issued but simply sent from one infrastructure to another.
The Ethereum ecosystem is thankful for today’s action and marks an increase of $1.25 billion held internally.
Among those who did not like the news is certainly Circle, the company behind USDC, which has its roots in the DeFi world and enjoys a very good reputation in the Ethereum world.
At the moment USD coin is the only cryptocurrency taking back the value of the dollar, competing with USDT on Vitalik Buterin’s network.
Tether scores new highs as it battles market FUD
Tether continues to increase its dominance in the stablecoin sector, and the news of USDT’s chain swap is just the latest in a series of successful actions taken by the Lugano-based company.
Meanwhile some FUD (fear, uncertainty, doubt) poured into the market yesterday, following a mild and momentary depeg of USDT, caused by a pool imbalance on Curve.
In the early morning hours of 15 June, a few traders had fun causing market disruptions by manipulating the Curve platform, particularly the 3pool consisting of USDC, DAI and USDT, where the latter coin reached a balance of 70% of total liquidity.
The imbalance caused a deviation from the base price of the currency, which lost 0.35% of its value in 5 hours of trading, but returned to parity with the dollar in the following hours.
Paolo Ardoino, CTO of Tether, reassured his community that in the event of serious depeg of the currency, his team would be ready to take forceful action, bringing the quotations back to their original value.
Tether is a company that is gaining more and more strength in the cryptocurrency sector, positioning itself as a leader in the stablecoin market.
The Lugano-based company certainly has no shortage of funds, having decided a few weeks ago to devote part of its profits to buying Bitcoin.
Only two days ago, supporting the case for Tether’s strength, USDT touched a new all-time high at $83.49 billion, marking a new record for circulating assets.
As of December 2022, Tether’s growth has been frightening, with a capitalization increase of $18.5 billion.
We will see how far the cryptocurrency will go and whether USDC can keep up with its rival’s surge.
