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TRC-20 Tether [USDT] Circulation On Tron Exceeds $12.4 Billion

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More than $12.4 billion in the stablecoin Tether [USDT] has been issued on the Tron [TRX] blockchain as revealed by the foundation’s CEO Justin Sun.

This development comes three weeks after the project founder had revealed a milestone of $9.3 Billion USDT issued on Tron which was achieved after 644 days. The number of USDT issued on the blockchain has increased significantly since the first-ever 10 USDT was issued all the way back on the 17th of April, 2019.

The world’s largest stablecoin is also issued on a myriad of chains including Bitcoin Cash, EOS, Liquid, Solana, and Algorand.

And for the longest time, a great majority of Tether were minted using Ethereum’s ERC20 standard. However, the minted stablecoin using the TRC20 standard has seen a much larger transaction count in 2021.

Tron has rapidly emerged as the fastest-growing blockchain for USDT issuance.

Coin Metrics

TRC20-based USDT has seen a higher transaction count than ERC20-based USDT tokens every day this year. According to the latest chart compiled by Coin Metrics, it was found that Tron captured more transactions than both Ethereum and Bitcoin combined.

In a recent edition, Coin Metrics’ ‘State of Network’ report had revealed,

“Tether activity has increasingly shifted over to the Tron version of the stablecoin. Since the beginning of 2021, the amount of USDT_TRX active addresses has eclipsed the number USDT_ETH active addresses.”

Why Has Tron Been Successful In Attracting More Users?

The shift in this sentiment is undoubtedly the massive transaction fee in the Ethereum network that has resulted in users looking for affordable alternatives. In the case of Ethereum, the transaction fees have risen due to rising demand stemming from the flourishing decentralized finance [DeFi], while Tron fees, on the other hand, have remained minuscule.

Hence, the TRX network has managed to attract the issuance of not just teh most popular and widely used stablecoin but also other digital assets on its blockchain. The blockchain now hosts TRC-BTC, TRC-ETH, WBTC, WETH, WLTC, and TRC-AMPL.

Moreover, Sun had also hinted that more ‘wrapped’ digital assets will be issued on the network.

Here’s How Tether Inflows Played Crucial Role in Identifying Bitcoin’s Dip Buy Opportunities

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Bitcoin’s price was still struggling to hold its fort above $32,000. The world’s premier cryptocurrency saw erratic behavior over the past month as it fluctuated far from its recently established all-time high. At times like these, the dynamic between top stablecoins’ exchange data and Bitcoin’s short-term price movement reveals crucial data points.

The crypto-analytic platform, Santiment shared a pretty interesting take on the same. It found that since the beginning of the year, the amount of ERC-20 Tether moving to known exchange wallets has spiked on three separate occasions. The inflow of the top stablecoin intensified around each correction that Bitcoin underwent. This suggested potential dip-buying efforts by market speculators.

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More specifically, over 2 billion USDT entered exchange wallets during the major price dip between January 4th-5th. An additional 3.6 billion USDT inflow to exchanges was recorded between January 11th-13th when Bitcoin’s price took a plunge from its ATH to $34.4k.

More recently, between January 21st-22nd, more than 2.4 billion USDT entered exchange wallets according to Santiment’s latest chart.

This does not end there. The platform also revealed that there were several isolated spikes in Tether’s exchange inflow around local BTC bottoms, similar to ones observed on January 15th and January 20th, respectively.

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And Tether is not the only stablecoin. A similar pattern was also seen in exchange inflows of other pegged tokens such as USDC, TrustToken’s TUSD, and DAI which registered a string of upticks around Bitcoin’s recent pullbacks.

Where was this pressure coming from?

The growth of Tether in 2019, and even in 2020 has been far from stupendous. This can significantly be credited to Bitcoin which witnessed its price blast through the roof especially in the first and second weeks of the new year, which in turn, resulted in the minting of more and more stablecoins.

But institutions have found their favorite alternative investment asset and were found to be heavily investing in it. Yes, Tether continues to be the top dog.

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Besides, Santiment also noted the pairing the median transfer value of stablecoins in the past 30 days, plotted against the price of Bitcoin chart with exchange inflow data suggested that the [potential] spikes in buy-side pressure were in fact steered by large stablecoin holders rather than retail-sized investors.

How Does It Matter Bitcoin Now?

If the above charts are to be taken into consideration, the latest spike in stablecoins’ exchange inflow could potentially suggest Bitcoin-related buy pressure which, in turn, could further advance the crypto-asset’s price movement to soar higher.

Having said that, it is impossible to draw a definite conclusion whether the stablecoins entering exchanges were used to buy BTC, altcoins. However, the above charts did paint a picture that institutions were optimistic and were looking for potential buying opportunities.

Bitcoin Aims For $40K Yet Again As Stablecoin Inflow Spikes

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Stablecoin influx into cryptocurrency exchanges has surged as Bitcoin’s price saw a relief rally and approached $40k.

As Bitcoin joined the bullish streak yet again, the run has opened new doors for the stablecoin bunch. The dollar-pegged or asset-backed-tokens have gained much wider adoption in recent times as their importance has gained prominence amidst the continued volatility in the market which brought about the need for lower volatility crypto-assets.

According to the crypto analytical platform, Santiment, these pegged crypto-assets have continued to have larger and larger ratios of tokens moving to several cryptocurrency exchanges. Tokens such as USDC, TUSD, and SAI have especially mirrored the proportion of its tokens moved to exchanges as Bitcoin’s price has surged.

santiment

Why now?

If the factors such as individual and institutional interest go, the case for a wider blockchain and crypto-asset adoption and investment is inevitable. Moreover, taking into consideration the growing and expanding ecosystem, the potential market participants and users have strongly sought to gain exposure to this area, at the same time, there is also a push for less volatile, and more sophisticated, crypto investment options which has further helped pegged tokens to surge in market cap.

What Does Stablecoin’s Resurgence Mean For Bitcoin?

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According to data from CryptoQuant, stablecoin deposits was first noted around the 13th of January when Bitcoin’s price saw a noticeable spike after trading in the red zone. Along with it, the cryptocurrency market also showed signs of recovery. Hence, the latest trend was indicative of significant buying pressure for Bitcoin as well as altcoins. This also meant that the investors bought the dip as depicted by the rising stablecoin inflow.

This is evident because traders tend to use stablecoins such as Tether [USDT] or USDC etc., rather than fiat since these are pegged to the value of fiat which makes it tradable across exchanges. The demand for stablecoins has increased magnificently over the past weeks. Leading the pack was USDT with a market cap of more than $24 billion as whales and high-net-worth investors jumped in to stack millions of dollars worth of Bitcoin.

Bitfinex Parent Company, iFinex Receives Another Deadline To Present Documents

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The crypto-verse harbors several legal cases. The Bitfinex/Tether case has been one of the longest and most controversial cases in the industry. The battle between iFinex, the parent company of one of the biggest exchanges in the crypto industry, Bitfinex, and the New York Attorney General [NYAG] seems to be getting nowhere as another extension of a deadline was requested by the parties involved.

Bitfinex and Tether Case Takes A New Turn

iFinex has been in court fighting against the NYAG since April 2019 following an $850 million cover-up of funds. iFinex had been holding back from presenting the documents that were required for the case. However, the latest virtual hearing seemed to have cooled things down as the Office of the New York Attorney General [OAG] penned down a letter to Justice Joel M. Cohen seeking an extension for iFinex to submit the documents before the court.

The Attorney General pointed out that the deadline that was set during the virtual conference that took place on 17 September 2020 wasn’t enough for iFinex to gather the required documents. Hence, a plea to extend the deadline for submission to 15 January 2021 was presented in the letter. The letter was written on 9 December 2020 and the Judge approved the extension on 12 December 2020.

In the previous letters, iFinex was time and again called out for not submitting documents at the assigned time. In a filing, the OAG suggested that it would urge the Court to order the “immediate production of documents and information by Respondents” at the video conference. However, in the latest letter, the NYAG revealed that since the previous meeting [the virtual conference] the parties involved in the case were cooperating especially in the submission of the documents. Additionally, the NYAG affirmed that the parties would present themselves before the court if summoned.

While the case is still in court, the parties involved in the case remain almost unfettered. Tether has been aiding the overall market cap of the crypto industry as it been recording an exponential surge. At the time of writing, the market cap of the largest stablecoin was extremely close to that of XRP’s. With the market cap of XRP at $25.15 billion, Tether’s [USDT] market cap was at $19.7 billion.

Tether Dips by 80% Despite Stablecoins Supply Hitting $20B as USDC Bolsters

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While the cryptocurrency market was on a rollercoaster ride this year, it was the stablecoins that witnessed exponential growth. The market has recently touched the coveted $20 billion mark with respect to the total volume of stablecoins in circulation. Tether [USDT] continued to dominate the charts despite a minor slip and still had a large fraction of supply share, while other stablecoins were starting to make up the ground.CM

This was revealed by the latest edition of Coin Metrics’ State of Network report which further noted that it was the growth of the second-largest stablecoin USDC growth that has been outpacing Tether causing its fall below 80%, a level unseen in the modern era of stablecoins.

Despite the fact that the values of all other stablecoins combined pales in comparison to the supply of USDT, which currently stood at $15.46  the growth of the contenders market cannot be ignored.

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USDC Sets out to Eclipse USDT

The Coinbase-backed stablecoin has recorded massive gains this year. The total supply has topped $2.53 billion and is showing no signs of slowing down. USDC is essentially a centralized dollar-pegged stablecoin which is issued by the Centre Consortium, a collaboration between crypto exchange Coinbase and payment service firm Circle.

The growth was potentially triggered due to the recent explosion in DeFi’s yield farming popularity, in which the liquidity providers are incentivized for staking stablecoins and other digital assets in decentralized protocols for the use of financial activities such as loan issuance, etc.

USDC always had an edge over other stableccoins since it was the first Ethereum-based stablecoin that was launched after Tether in 2018. Furthermore, USDC already issued a supply of over $400 million before its rivals such as Huobi’s HUSD and Binance’s BUSD which were released a year later.

What further spurred the growth was the release of USDC version 2.0 in August this year which added additional security infrastructure to the USDC smart contract. With the association of industry giant such Coinbase, the stablecoin has become increasingly popular among the newcomers as well as experienced traders of the platform. And hence, USDC has managed to establish itself as a go-to asset in the DeFi sector, a major onramp within the ecosystem.

Tether [USDT] Becomes The First Stablecoin To Launch In Solana Blockchain

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Stablecoin issuer Tether Limited has announced the launch of the world’s most commonly used USDT stablecoin on Solana, which happens to be a layer-1 Proof-of-Stake[PoS] blockchain after a new technical integration with the Solana Foundation. Tether also claimed that the latest collaboration would allow institutions to trade USDT at Nasdaq Speeds.

Tether’s official blog post revealed,

“USDT’s integration into the Solana network will facilitate the building of ultra high-speed, low-cost decentralized finance [DeFi] applications. In addition to Solana, USDT also supports Algorand, Ethereum, EOS, Liquid Network, Omni, Tron, and Bitcoin Cash’s Standard Ledger Protocol.”

Following the completion of the integration on the blockchain, USDT holders will be able to exchange Tethers at speeds more than 50,000 transactions per second [tps] and the cost for which is often less than $0.00001 per transaction as compared to Ethereum which has a speed of 15 transactions per second, and an average fee is about $2.65 per transaction.

Talking about the new initiative, Paolo Ardoino, CTO of Tether stated,

“Our integration with Solana serves a growing ecosystem of projects that are now getting developed and launched on Solana, Serum being a notable example.”

Some of the prominent projects on Solana are Project Serum, a decentralized exchange  [DEX] with trustless cross-chain trading backed by FTX and Alameda Research; Torus, a key management system; and Chainlink, Currently, apart from the blockchain Solana, USDT has been previously launched in Algorand, Ethereum, EOS, Liquid Network, Omni, Tron, and Bitcoin Cash’s Standard Ledger Protocol.

USDT is the largest stablecoin by market cap and is also being widely used in the DeFi sector as it continued to be by far the most popular stablecoin across the board.

Along the same line, Anatoly Yakovenko of the Solana Foundation claimed that Tether is the “lifeblood of DeFi” as well as an important pillar of the crypto community at large.

OmiseGo (OMG) Token Surges by 156% Following USDT Integration to Hit $8.79

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OMG tokens might be the hottest crypto asset in the market right now. On August 20, Tether announced the integration of its stablecoin, USDT, on the OmiseGo (OMG) Network. Following the announcement, the price of OmiseGo’s native token, OMG, skyrocketed by almost 160 percent to reach $8.79.

Back in June, after the first partnership with Tether, the price of OMG tokens shot up again; but then it was 20 per cent to a much lesser extent. OMG tokens were struggling to hit the $1 price level in early 2020.

OMG token price bullish

Its price rested around $0.50 following the market meltdown back in March, until major U.S. cryptocurrency exchange, Coinbase, listed the token. The news propelled OmiseGo tokens past the $1 resistance to $2 level before correcting.

OMG tokens price action fluctuations this year are primarily owed to rumours of its partnership with Tether, which are now authentic. Currently, USDT occupies the number three spot, as the third-largest cryptocurrency by market capitalization after usurping Ripple’s XRP yesterday. Furthermore, USDT is also the most traded stablecoin and the most predominant ERC20 token.

The rumours of the partnership were verified back in June, pushing OmiseGo price by 20 percent within hours, hitting the $2 level. Last weekend, OmiseGo tokens were trading just under $2. Following Tether’s announcement yesterday, the price of OMG tokens rallied by a massive 156 percent in 24 hours to reach a multi-week high of $8.79, according to Coinmarket cap.

OMG token

OmiseGo USDT integration ease Ethereum Network congestion

At the time of writing, the market value of OMG tokens is $8. The current price comes after a slight receding from highs of $8.79. Tethers integration with OmiseGo has arrived at a perfect time when the DeFi market is hot; and Ethereum is struggling to handle the pressure, as transaction fees on the Ethereum network skyrocket.

After BTC, USDT is the most popular trading pair and handles most transactions on the Ethereum network. OmiseGo’s capacity to multi-trades into a single trade can help unclog the Ethereum Network, relieving the entire ecosystem from high network fees and delays.

USDT Surpasses Ripple (XRP) to Recoup Top 3 Cryptocurrency Spot

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Tether (USDT), the most popular stablecoin in the world, is yet again battling Ripple’s XRP for the top three spots. Can USDT maintain the number 3 spot? 

Earlier today, the world’s largest stablecoin, Tether, became the third largest cryptocurrency by market capitalization, forcing XRP to the fourth spot, according to blockchain analytics firms Messari and Coin Metrics.

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Tether overtakes XRP once again

As recently reported, USDT’s market capitalization surged by $1 billion in 7 days, pushing the total to $12 billion. However, according to a tweet by Coin Metric analyst Lucas Nuzzi, the total market capitalization of USDT exceeded $13 billion, surpassing Ripple’s XRP in the process.

Notably, market capitalization refers to the number of tokens multiplied by the price of each coin. However, since Tether is a stablecoin, its price is not likely to fluctuate and the price of a USDT token will always remain $1. The only manner to raise USDT’s market cap is by mintage of new tokens.

This is not the first time for USDT to surpass XRP in market capitalization ranking. Earlier this year, during the March market collapse, Tether concisely took over as the third largest cryptocurrency in the world after exceeding $5 billion in market capitalization.

USDT still growing despite damaging lawsuits

The growth of Tether comes amid a string of lawsuits facing its parent firm, iFinex. Ifinex is also the parent company to popular cryptocurrency exchange platform Bitfinex. Bitfinex is facing charges against fraud for supposedly hiding a loss of $850 million dollars of the commingled client and corporate funds from investors. The lawsuit is led by New York Attorney General Letitia James.

Furthermore, Tether is also facing allegations of printing billions of dollars in crypto, and for manipulating the price of BTC back in 2017. Nevertheless, USDT is still growing and is currently occupying the third spot among cryptocurrencies.

Switzerland launched the World Stablecoin Association to Promote Global Stablecoins Development

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The stablecoin market is currently experiencing a massive surge, and the cryptocurrency ecosystem is establishing an international stablecoin organization in crypto-friendly Switzerland. The headquarters of the organization, the World Stablecoin Association (WSA), will be based in the city of Geneva.

According to reports, the association will be set up by the VirgoX Crypto Exchange Platform and the Global Digital Assets Company of Blockchain Capital Markets. The Chief Executive Officer of VirgoX, Adam Cai, noted that the main objective of the international stablecoin organization is to create a genuine, neutral universal organization consisting of all major stablecoin projects.

Besides, Cai noted that the WSA is already involved in discussions with key stablecoin schemes such as Tether (USDT), DAI, USDC, and HUSD; they aim to join the international stablecoin organization by the end of the year. Notably, WSA is currently supporting upcoming stablecoin startups. He stressed that the key issue facing the stablecoin sector is that the upcoming stablecoin initiatives are still short on adoption.

International stablecoin organization membership

During the launch of WSA, its membership consisted of the two founder companies, and blockchain-based smart contracts audit firm, BlockGeeks. The WSA also features global stablecoin such as the QCAD, which is backed by the Canadian dollar and Ren De-Fi protocol. 

Furthermore, Cai noted that the member firms would participate in monthly virtual conferences, and actual seminars in Geneva, Switzerland. The conferences’ primary agenda will be to discuss the development of stablecoins, providing, and examining networking and partnership possibilities. 

More members of the international stablecoin organization include projects such as CBRL, Peg Network, Stably, USDK, XDB, and entities like Nova Club, Alpha Sigma Capital, and Consensus Labs. The announcement also noted that WSA is open to allow various firms; such as businesses, government bodies, and other relevant entities in the stablecoin sector to join..

Stablecoin market surging rapidly

The establishment of an international stablecoin organization follows the explosion of the stablecoin industry in 2020. Over the last seven months, major stablecoin projects, Tether and USD Coin, have reached significant landmarks. Earlier this week, Tether hit a $10 billion amount, reaching a new all-time high in its market cap. On the other hand, USDC reached a significant landmark earlier this month, breaking past the $1 billion market cap threshold.

Tether will Surpass Ethereum and Take Position #2 by Market Cap

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Bloomberg’s report indicates that Tether(USDT) will take the # 2 spot and overtake Ether by market capitalization. The report, which provided Tether’s future outlook for the month of June, identified Tether ‘s growth as a major driving force for Bitcoin ( BTC). In particular, citing the relevant digital link between blockchain and the US dollar as an important catalyst for blockchain transactions. In addition, Tether provided an urgent need to store value in the world reserve without interference from the middle parties.

Tether (USDT) Overtook XRP

Meanwhile, the report notes that it is only a matter of time before the stablecoin rises to position 2. Recently, Tether(USDT) toppled Ripple (XRP) from third place. Trends in the BTC / USDT chart show that the stablecoin won’t stop any time soon. In fact, the coin is likely to take on Ethereum and move on to Bitcoin. In addition, the report noted how the adoption of tether provided the world reserve currency with a valuable digital proxy.

Past trend analysis noted that the perfomance of Ethereum has always been in sync with the perfomance of Bitcoin. A fact that clearly shows that Ethereum lacks the buoyancy of itself. And it’s only going to operate under the shadow of BTC. In fact, little upsides on the part of Bitcoin have resulted in little or no upsides on the Ethereum trend. Meanwhile, Ethereum is breaking away from its dominant adoption, which benefits from favourable macroeconomic conditions.

US Dollar is Performing Better than Other Major Currencies

On the other hand, the US dollar is winning big against other leading currencies. Despite a massive stimulus package to curb Covid-19, the US dollar has a remarkable perfomance. As such, the US Dollar-linked stablecoins are gaining further traction. Unfortunately, the legal issues facing USDT and major exchanges such as Bitfinex are hindering their future growth.