Tether (USDT) Accelerates Switch to Ethereum Network
Bittrex, as well as smaller exchanges, will close its Tether (USDT) wallets to switch to the Ethereum-based version.
A new wave is sweeping exchanges, as market operators are switching between the Omni-based version of Tether (USDT), and issuing Ethereum-based tokens. Binance became the first exchange to start the process which is essentially a token swap, as it had one of the biggest hauls of USDT.
Bittrex has taken up the task next, as well as lesser exchanges:
Currently, Tether is on the way to switching all Omni coins, and the Ethereum network carries more than 1.55 billion coins. The total number of USDT has also grown in the past couple of days, to 4.039 billion tokens, once again coinciding with a strong upward drive in Bitcoin (BTC) prices.
USDT tokens have spread throughout the crypto ecosystem and now exist also on the TRON, EOS, and Algorand networks, as well as the Liquid Network by Blockstream.
In the coming weeks, other exchanges may start switching to the new network, meaning traders will potentially have to use an Ethereum-based wallet to transfer USDT. The Dynamic Trading Rights exchange has scheduled the switch for August 7.
USDT tokens are widely used to transfer funds worldwide, and there have been reports the stablecoin plays a role in circumventing capital controls in China. While there have been fears about the backing of USDT, given that Tether used some of its funds to prop up Bitfinex, the coin has enjoyed trust as a highly liquid asset.
In addition to easier and cheaper transfers, USDT also supports the high liquidity of ETH, propping up the price to $234.14. The issuance of USDT on the Ethereum network continued, with the latest tranche on August 6:
Based on Ethereum’s Gas Station, the Tether smart contract is among the most active, signaling widespread network usage. The smart contract burns around 3.62% of all gas, lining up among the best-used utilities on Ethereum.