Key Takeaway
- USDT minted on Ethereum hits record low
- USDT holders turning to other blockchains like Tron for lower features and transaction fees.
- USDC closing in on USDT stablecoin marketshare
Analysis platform DeBank released a chart that showed the last time USDT was minted on Ethereum was May 31, 2021. Since then, the volume of minted ERC-20 USDT has remained stable at about $29 billion.
This period of mining activity for USDT on Ethereum represents the longest period since USDT initially launched on the Ethereum blockchain. It is understood that many USDT stablecoin users prefer to use alternative blockchains like Tron and Binance Smart Chain (BSC), which boast lower fees.
Tron, in particular, has surged in popularity among USDT users and surpassed Ethereum as the major USDT blockchain network. The protocol currently has $32 billion worth of USDT housed within its ecosystem.
As expected, the inactivity of USDT on Ethereum has led to other rival platforms eating a significant part of its market share. USD coin (USDC) has witnessed growth inactivity. It is understood that the coin is inching closer to flipping USDT dominance on the Ethereum blockchain,
A recent Messari report confirmed this trend stating that USDC has witnessed interest from DeFi users. It is expected that USDC will likely overtake USDT's stablecoin supply on Ethereum.
This trend has not been lost by Tether Chief Technology Chief Technology Officer (CTO) Paolo Arduino. Ardoino revealed in a thread via his Twitter page that increased competition is a major part of any industry.
He further added that the team at Tether was happy that the concept it developed in 2014 had become a significant sector in the crypto industry. Competition is a good aspect for projects to grow and bring better innovative projects.
Ardoino knows that Circle cannot overtake at this time, and his words make perfect sense considering how tense it was,
Whch of the USDT blockchain networks do you prefer?
