🌎 Tether to Move $1 Billion USDT to Tron Network

Major USDT Chain Swap to Tron Network Underway

Tether, a leading stablecoin issuer, has announced its plans to coordinate with a top third-party cryptocurrency exchange to facilitate a chain swap that will move $1 billion USDT from other blockchains to the Tron network.

The swap, announced by Tether on January 6, aims to convert a portion of the third-party provider’s Tether (USDT) held in cold wallets to the Tron network. The USDT will be swapped from different blockchains, including Ethereum and Solana, where Tether’s USDT is currently available.

What is a Chain Swap?

A chain swap involves the movement of cryptocurrency from one blockchain to another. This process is crucial to the trading market, allowing traders to utilize their digital assets across various supported blockchains.

In this instance, the chain swap will not impact the total supply of USDT. Tether’s flagship stablecoin plays a significant role in the crypto industry, with billions of dollars traded daily. USDT holders can transact without the inherent volatility associated with the crypto market, as the stablecoin is pegged 1:1 to the U.S. dollar.

Market Dominance and Performance

Tether’s USDT dominates the stablecoin sector, boasting a market capitalization of over $137 billion. Circle’s USDC is the second-largest stablecoin, with a market capitalization of $45.8 billion.

Recent data shows Tether’s 24-hour trading volume to be around $102.5 billion, representing a 61% increase in the past 24 hours. USDC’s 24-hour trading volume stands at around $7.1 billion, up 80% in the past 24 hours.

Key Benefits of Stablecoins

Stablecoins like USDT offer several benefits, including:

Reduced volatility: Stablecoins are pegged to a fiat currency, reducing the risk of price fluctuations.
Convenience: Stablecoins enable seamless transactions and cross-border payments.
Accessibility: Stablecoins provide a gateway to the crypto market for users who are risk-averse or new to cryptocurrencies.