Hello my fellow bloggers! Today a huge amount of USDT was sent to exchanges. Do you want to know what is happening? Let me explain this to you.
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Some of you definetly received multiple whale alerts for USDT moves today. All in all more than 2 billion USDT moved in and out from exchanges. The current chart of USDT inflow to exchanges looks really crazy:
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On the chart, you can see a huge spike of ~$500m in USDT sent to exchanges. We have never seen anything like this before. If you judge just from this chart, it looks like a pump & dump scheme or like USDT know joined intensive money printing we saw from governments in all over the world. Yet it is not what it seems. The below whale alert can pure some light:
2,003,368,686 USDT were burned. Wow, how did it felt for person, who pressed the button to burn 2 billion dollars? The more important question is why on earth did the do this? The reason is very simple – they just swapped all those USDT between blockchains. This is well explained in USDT twitter:
Today, in about 4h, an exchange will convert 2B #tether TRC20 to ERC20. You'll see multiple ERC20 authorisations, followed by TRC20 <=> ERC20 swaps and a final TRC20 burn. As result of this operation the number of issued Tethers in circulation won't change.
We all got used to see USDT mostly on ethereum blockchain. It served us well for years, but now it is hardly usable for small transactions because of gas fees. As ETH goes up and more and more people build and use Dapps on ethereum blockchain, the worse situation becomes. Recently, the number of USDT transactions on TRON blockchain surpassed the usage of ehtereum blockchain. Here is the chart with the number of active addresses:
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At the moment, ethereum is mostly used for large transactions of USDT, where TRON and other buses used for smaller transaction. At the same time USDT is burned as TRC tokens. How do you use USDT these days? Do you use it on ethereum, TRON? Do you prefer other stable coins? Let me know in the comments below!
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Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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