On August 10, 2020, Tether (USDT) announced in an official tweet that the developers were working with a third party to perform two conversions of the exchange chain from the TRC20 tron Protocol to the Ethereum-based ERC20 Protocol.
According to Tether, the next swap, which includes a substantial amount of us $ 500 million, will not change the total number of tokens in circulation. It will only be transferred from the tron blockchain to ETH.
Tether joined forces with the Tron Foundation to launch the USDT stablecoin as a TRC-20 token in early 2019. The partnership started well when the TRC20-based us dollar rose rapidly, reaching a total offer of 490 million tokens.
This growth in volume has prompted Tron CEO Justin Sun to predict that USDT will soon become the dominant digital asset pegged to the dollar.
Shortly after the prediction of the Sun, the TRC-20 tokens issued by Tether became the second largest stablecoin. The tokens even surpassed the original US dollars issued over the BTC-based Omni Layer Protocol.
Stable coin Issuer transfers USDt tokens to Ethereum
Since the first success of the Tron and Tether collaboration, the Sun platform has received millions of dollars transferred to the Ethereum network.
The previous exchange took place on June 29, 2020. Tether withdrew $ 300 million in US dollars from Tron and invested it in the Ethereum ecosystem.
This move meant that the Ethereum Protocol now contains the majority of us dollar coins (about 61.6%).
Meanwhile, The Tron Protocol currently accounts for about 29.4% of all US dollars in circulation. Other blockchain networks, such as EOSIO, Omni, and Liquid, should share the remaining 9%.
Usdt movement may reveal interest in DeFi Tether
Paolo Ardoino, CEO of Tether and its related exchange Bitfinex, did not give an exact reason for the recent chain exchanges. However, it is obvious that USDt is slowly saving Tron.
Justin Sun, who often posts tweets exaggerating even the slightest new milestones for the tether version of TRC-20, is also eerily silent about recent us dollar-to-Ethereum exchanges.
The silence of both camps leaves room for a lot of speculation. Some members of the crypto community claim that the reason for swaps in US dollars is the desire of the Issuer to participate in thriving Ethereum DeFi projects.
Despite significant amounts of us dollar-to-ETH exchanges, Justin Sun’s platform has remained quiet since Tron held an IEO of its dollar-backed stable coin, dubbed JUST, in may.
