According to a Nov. 2 tweet from Bitfinex CTO Paolo Ardoino, leading stablecoin issuer Tether (USDT) moved $100 million worth of USDT from the Tron network to the Ethereum blockchain.
Crypto tracking site Whale alert initially came out with a report claiming that a large amount of USDT worth $100,158,970 was sent from Bitfinex exchange to the Tether treasury. This alert prompted Adriano to come out with his tweet to prevent a panic.
The major chain swap proves once again that ETH remains Tether’s biggest value settler. The leading stablecoin firm has been routinely performing chain swaps from Tron to Ethereum due to increasing user demand to shuffle their tokens to the dominant ETH blockchain.
Although USDT is available on more obscure chains such as Algorand and EOS, more users prefer ETH due to the decentralized finance (DeFi) ecosystem’s growth.
In Sep. 2020, Tether coordinated two chain swaps with an unnamed exchange that saw more than $1 bln USDT leave the Tron blockchain for Ethereum. The latest chain swap would be the third massive transfer of Tether from TRON to ETH.
Tether’s transparency page, now confirms that ETH reserves on the platform have swelled to $11 bln, with Tron coming in second with $4.7 bln.
Tether Chain Swap Comes Amid Tron Hack
Interestingly, the latest chain swap comes just a day after an attacker executed malicious transactions on the TRON network during a routine upgrade.
The security breach forced the super representative responsible for block generation to suspend block production, causing the entire Tron network to shut down for about three hours. TRON’s price fell by almost 3% following the attack.
Tron CEO Justin Sun quickly took to Twitter to assure users that no funds were lost and that the network was back to normal. However, it seems that the incident was enough to push Tether’s management to take action.
Tether’s decision to ship large amounts of USDT away from the platform proves that the ETH network is gradually winning the dominance war against Tron. Sun had previously claimed TRON’s capabilities vastly exceeded ETH, attracting heavy criticism from the crypto community.
Proof of USDT Growing DeFi Interest?
Sun’s platform has seen millions of USDT swapped to the ETH in the past few months. Paolo Ardoino, the CTO of Tether’s associated exchange Bitfinex, has been vague about why the routine chain swaps were implemented.
However, many crypto enthusiasts speculate that Tether is slowly bailing out on Tron to participate in the exploding DeFi projects on Ethereum.