A whale transaction of $15 million USDT minted at Tether triggered a hype momentarily. However, Paolo Ardoino, the CTO of Bitfinex and Tether, soon clarified that it was a chain swap from ERC-20 to Tron.
Minting or burning USD-Tether has had predominant effects on the price of Bitcoin. The volume of USDT has not only increased by 122% in 2019, but it has also acted as a lead indicator for the price of Bitcoin. The daily volume of USDT and Bitcoin are also comparable.
Ardoino also notified Whale Alert to configure their alert system to report swaps differently, he tweeted,
Would be nice to have a better notification for chain swaps.
Comparative Volume of Ethereum and Tron on Tether
Furthermore, Tether operates on three different chains – Omni, Ethereum, EOS, Tron and Liquid. The latter four were introduced in the past year. With low volumes of transactions via cryptocurrencies and DApps, Tether transactions account for a considerable portion of crypto transactions.
The swap of $15 million from Ethereum to Tron is huge. However, in comparison to the total volume of USDT based on ERC-20 tokens, it still has a long way to go.
According to the Tether transparency update, the amount of USDT issued on Ethereum is 7.2 times greater than Tron. In total, 4.4 Billion USD-Tether is in circulation currently. Moreover, the total amount of 40 million Euros and about 23 million Chinese Yuan are issued in Ethereum only.
Apart from the dominance of Tether, Ethereum seems to be gaining limelight from the tentative launch of Futures approved by the CFTC. Hence, despite the criticism of its scalability and uncertainty around the Ethereum 2.0 launch, the platforms still seem to be leading the space.