Looming Legal Issues and Transparency Questions Fail to Dent Tether’s Momentum – Bitcoin News

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Tether has never been so popular. A quick look at the Coinmarketcap data underscores this point: The 24-hour trading volume in USDT (US dollar-denominated tether) exceeds both Bitcoin and Ethereum combined.

Legacy stablecoin users show no signs of sagging

A slow action of the New York Attorney General against the Tether parent company iFinex for fraud and market manipulation, along with numerous other points of criticism, the interest of dealers in the most popular stable coin is not even remotely defused.

The competition grows legs

While there are of course competing stablecoins, none has managed to slow Tether’s momentum significantly. Take Circle, which is issuing the competing USD coin. In addition to monthly reserve certificates from the auditing firm Grant Thornton, it offers a more transparent issuing process.

Despite these improved protections and a 10-fold increase in inflows over the past 12 months, the capitalization is just over 20% of Tether’s total. Additionally, USDC’s 24-hour revenue is a comparable amount, around $ 2 billion versus Tether’s volume, which has been regularly exceeded $ 100 billion a day.

These numbers indicate Tether’s amazing role in the liquidity of the cryptocurrency market. Users are savvy, which is borne out by recent data showing how merchants are increasingly using it Tether issued by Tron versus tether issued by ERC-20.

Usage shows no signs of slowing down

A quick look at the highlights of the USDT wallet holder 2.4 million Ethereum chain owners and another Over 1.8 million on Tron.

Interesting, Tron took the lead in tethered transactions due to its more competitive fee structure Since the beginning of 2021, Tron has processed more Tether transactions than Ethereum every day. This reflects its more favorable cost structure at a time when Ethereum’s rapid price hike has simultaneously increased transaction costs.

While Tether’s dollar volume processed by Ethereum more than doubles Tron’s lower volume transactions, Tron users can move Tether seamlessly through the network for fractions of a cent compared to the cost of Ethereum which briefly surged above $ 6 per transaction.

This development could trigger further steps by Tether to expand towards other chains in order to keep transaction costs in line with cheaper chains like Tron. Still, DeFi’s magnetizing pull may make Ethereum’s relative dominance too great to question.

Do you see a future for stablecoins in general and tether in particular? Let us know what you think in the comments section below.

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