Tether Users Choose TRC20 Over ERC20 Due to High Fees
As the value of ETH rises, fees on the Ethereum blockchain keeps growing. Many users accustomed to using USDT on the ERC20 are switching to stablecoin on the TRON blockchain
In 2021, the number of Tether transactions on the TRON blockchain turned out to be more than on Ethereum. For a TRC20 transfer, the commission is less than a cent, while an ERC20 transfer costs an average of $6.
Despite these successes, the total volume of Tether transactions on Ethereum is still twice as high. This blockchain also has 50% more USDT than the TRON blockchain. Information provided by CoinMetrics.
It is becoming clear that high fees are pushing users to seek alternative blockchains. Ultimately, this will jeopardize the current position of Ethereum, which is the absolute record holder among altcoins.
As a reminder, Tether is the largest dollar pegged stablecoin. The cryptocurrency runs on blockchains like Ethereum, TRON, and Solana.
Settlements in USDT are in high demand, as they are tied to the usual measure of value - the US dollar. USDT is often used to pay off debts, make payments, make purchases, pay interest on deposits.
The popularity of the cryptocurrency has quadrupled over the past year and they are about $25 billion in circulation. Tether claims that each of its tokens is secured.