USD tether is the largest stable coin with a market cap of more than $ 4.63 billion. The increase or decrease in the supply of stablecoins had a remarkable impact on the crypto market.
Adam Back, the CEO of Blockstream, recently reported in a tweet about the emergence of Tether due to Bitcoin and now established a cause and effect relationship. Due to its dominance on the exchanges, Tether is one of the leading indicators of large price movements in Bitcoin.
Tether pumped bitcoin
Fiat pumped the line
– Dead Greenspan [tweets are not trading advice] (@MatiGreenspan) January 30, 2020
USDT on Ethereum Dominance
The release of Tether has now sparked a new battle for supremacy in the crypto room. Tether was originally issued on OMNI. However, since USDT was also created on Ethereum, Tron, EOS and recently Liquid as well. Ethereum currently dominates the issue with a share of 48%.
Not only the tether emission, but also the USDT transfer to Ethereum take over the majority share of the Ethereum blockchain. Recently, Ryan Watkins of Messari Research reported that
Ethereum’s economy is now dominated by a stable transfer of value. This is an incredible feat.
According to the results, the value transfers from USDT to Ethereum have exceeded the value transfers from ETH and ERC20 tokens since May 2019. In addition, the difference has continued to grow; So much so that USDT is now dominating the entire platform.
Value transfers on Ethereum blockchain (source)
The fluid test
However, the Liquid Network developed by Blockstream is expected to take over Ethereum’s stake soon. Blockstream’s Grubles tweeted
I understand $ USDt on Ethereum as a stopgap solution for more #LiquidNetwork Integration on exchanges. It just doesn’t make a lot of sense for a central asset to be moved primarily between exchanges on a “decentralized” platform. It’s backward and inefficient.
The Liquid Network was designed for exchanges and brokers and is very popular with L-BTC and L-USDT integrations on exchanges. In addition, Tether is mainly used on exchanges where Bitcoin and Altcoins are exchanged for USD or FIAT equivalent pairs. This makes it possible to shift the dominance.
Additionally, switching from its platform is not new to USDT. The stablecoin, which was once only issued at OMNI, has now shifted its dominance to Ethereum with a share of 48% compared to 32% at OMNI.
The actual impact of the increase on the price of the ETH token is also questionable. In the event of a postponement, the transaction volume on Ethereum would decrease, which does not make sense for any network.
As recently reported on CoinGape, Liquid Network is not introducing separate crypto for its blockchain. The fact has been appreciated by notable Bitcoin investors.
How does USDT’s market share affect the price of cryptocurrencies? Please share your views with us.
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