$1 billion worth of USDT was recently sent from tether to binance and In today’s Tether news, we find out why.
Amid the current market crash, $1 billion worth of USDT was transferred from Tether to Binance despite the past few days being devastating for the crypto market as well as the legacy markets. Bitcoin’s price crashed to a low of $34,000 on Binance and it Is now trading at $35,000 struggling to maintain the level.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 1,000,000,000 #USDT (1,000,000,000 USD) transferred from Tether Treasury to #Binancehttps://t.co/pctmfmlhGy
— Whale Alert (@whale_alert) January 22, 2022
Now, Whale Alert detected that $1 billion worth of USDT was transferred from the Tether treasury to Binance since Tether will coordinate with a 3rd party to perform a chain swap and will convert from Tron tRC20 to Ethereum ERC20 for 2B USDT. The total supply won’t change during the process which means that Tether hasn’t printed any new USDT and it is only deploying coins from Tron to Ethereum and sending them to Binance.
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As recently reported, USDC surpassed Tether in terms of total supply on the Ethereum network which means there are more coins on Ethereum than there are on Tether. The total supply of USDC on Ethereum is more than that of its long-time rival Tether. According to Etherscan, USDC has a supply of $40.5 billion while the USDT current total supply now stands at $39.8 billion on the ethereum blockchain. In terms of transfers, Tether seems to be the winner, however. The statistics show that Tether saw a total transfer volume of 136.7 milion while the USD Coin saw a little over 33 million which only shows that ERC20 USDT has been more transacted than the ERC20 USDC.
On the other hand, the circulating supply of the USD Coin on Tron is over $528 million and its total market cap stands at $46 billion. Tether is still the most popular stablecoin but USDC is becoming more popular in decentralized trades. As the activity across DEFI intensifies, USDC’s growth does as well. The demand for USDT is fueled by centralized crypto exchange users and it is still surprising how the USDT demand took a hit.
It’s important to note that Tether was getting some severe backlash because of its backing. It faced a few lawsuits over the past few years and failed to provide transparency that was enough for the regulators. Circle, on the other hand, hasn’t really gotten such regulatory hardships.
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