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Tron network loses $300 million USDT as Tether swaps to Ethereum

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Tron, the company behind popular cryptocurrency TRX, has been making great progress and has achieved quite a few milestones ever since the launch of its mainnet. The foundation’s blockchain network hit it off last year with a total of 4 million accounts generated on it.

It did, however, have a significantly lesser amount of active users compared to bitcoin and Ethereum. The most significant activity to date on the Tron blockchain was the millions of Tether swapped from the Ethereum network to the Tron network.

The TRC20-based USDT, which was launched in April 2019, recently hit a total supply of 490 million tokens. This is a whopping 12% of the 4.1 million Tether tokens that are in circulation, as per data from TRONSCAN. This milestone was a result of the addition of 100 million TRC20-based USDT tokens. To further boost the event, on the very same day tracking service Whale Alert reported another large transaction of 40 million new TRC20-based USDT was minted.

Tether switches sides

Things now have turned to the worse for the Tron blockchain, as the stablecoin company recently announced that it has converted $300M dollars’ worth of the cryptocurrency back to the Ethereum network. Prior to this swap, there was more than $863 million worth of the USDT on the TRON network.

The company took to Twitter to announce the move of more than a third of the Trc-20 based USDT to Erc-20. The stablecoin company also mentioned an unnamed third-party who’d facilitate the $300 million chain swap.

Ethereum is the biggest competitor for Tron in terms of a development platform, and Tron has always tried to beat Ethereum to become the most active network with more dApps. The current swap would be a push back for the Tron network as Ethereum dominance in terms of Tether supported by the platform.

The move also makes Ethereum the network that accounts for well over half of the $4.6 billion USDT across all blockchain networks.

As for the reason behind the sudden swap, neither Tron nor Tether has made any statements. Tron is well known for being quite noisy about its development and company CEO Justin Sun is already booed for over hyping even the slightest of announcements. The crypto community has called upon Sun to shed some light on the matter but he remains silent.

Tron progress goes on

Tron, however, continues to make some excellent acquisitions as recently the Tron Foundation recently announced its partnership with Steemit Inc, one of the largest decentralized blockchain-based social media and blogging platforms where users can be paid to curate or create content.

With this partnership, Tron’s network is would gain over one million users. Steemit powers several blockchain-based social media platforms like D.Tube, APPICS, and fitness Dapp Actifit. Old Steem tokens would now be converted to new Trc-20 based Steem tokens.

Anna Larsen
Anna Larsen has been a Crypto enthusiast since 2016. Fascinated by the technology and its usecases she decided to pursue a career in content creation related to this space. The journey has been exciting ever since.

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