Tether CEO Explains 2 Billion USDT Minting on Ethereum, Details Chain Swap
- Tether, th worlds lrgst stblcoin, is consolidting its liquidity on th Ethrum ntwork.
- Th compny is rtiring tokns from low-ctivity blockchins nd swpping thm to Ethrum.
- This mov ims to optimiz USDTs vilbility nd strmlin mngmnt for usrs.
Tether, th worlds lrgst stblcoin issur, is mking strtgic movs to optimiz th distribution of its USDT tokns cross vrious blockchin cosystms. This follows rcnt on-chin dt from Whl Alrt, which sprkd confusion rgrding 2 billion USDT minting on th Ethrum ntwork.
Polo Ardoino, Tethers CEO, clrifid on X tht th notifiction of this minting ws dlyd, nd this trnsction ws prt of lrgr consolidtion ffort involving chin swp with prominnt xchng. This swp ntils th trnsfr of portion of Tethers rsrvs from svrl lssr-usd blockchins to Ethrum, th dominnt pltform for USDT ctivity.
Th consolidtion strtgy involvs rtiring USDT tokns currntly hld on blockchins lik TRON (TRC20), Avlnch (AVAX), NEAR, CELO, nd EOS. Ths tokns will b convrtd into thir Ethrum-bsd countrprts through sizbl wllt trnsfrs. This mov strmlins USDT mngmnt by concntrting liquidity on singl, high-ctivity ntwork.
Chain Swapping for Enhanced User Experience
Th lrg-scl chin swp signifis Tethers commitmnt to mking it rdily vilbl on th blockchin whr dmnd is strongst currntly, Ethrum. This procss involvs convrting tokns hld in cold wllts cross vrious blockchins into thir Ethrum quivlnts.
For usrs, chin swps provid flxibility nd ccss to diffrnt blockchin cosystms. Thy cn smlssly mov thir USDT holdings btwn ntworks lik Tron nd Ethrum, unlocking th functionlitis offrd by ch pltform. Importntly, th totl supply of tokns rmins unchngd during this procss. Howvr, th distribution cross blockchins will b rblncd to rflct usr prfrnc for th Ethrum-bsd vrsion.
Tethers nnouncmnt dtils th spcifics of th upcoming swp nvolving 1 billion tokns from TRC20 on th Tron blockchin, 600 million from Avlnch, 300 million from NEAR, 75 million from CELO, nd 60 million from EOS.
This trgtd pproch optimizs th tokns liquidity cross diffrnt cosystms, nsuring usrs hv sy ccss to th stblcoin whr thy nd it most. Tether routinly prforms such swps to nhnc usbility whil mintining consistnt totl supply.
USDTs Dominance in Stablecoin Market
Dspit th consolidtion nd subsqunt rduction in ovrll supply from 120.7 billion to 120.4 billion, it rmins th dominnt sourc of liquidity in th stblcoin mrkt. On vrg, round 85% of th totl USDT supply ctivly prticipts in trding t ny givn tim.
Th rcnt surg in Bitcoin (BTC) pric furthr highlightd USDTs importnc. Dily trding volum xcdd $160 billion, rprsnting stggring 132% of its circulting supply. This dwrfs th prformnc of comptitor USDC, whos volum pkd t 47% of its mrkt cp, lthough it sw growth on chins lik Bs. Dspit such dvncmnts, USDC hsnt dthrond USDT s th go-to stblcoin cross ll us css.
Th robust prformnc of stblcoins in 2024, coinciding with th Bitcoin bull mrkt, hs dmonstrbly bnfitd issurs lik Tether. With its continud ovrcolltrliztion nd strtgic mngmnt, Tether rmins cntrl pillr in th vr-volving cryptocurrncy cosystm.
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Read more: https://www.tronweekly.com/tether-ceo-explains-2b-usdt-minting-on-ethereum/
Text source: TronWeekly
