Tether dominance in Ethereum is slowly rising especially in the payment services realm. It has overtaken Ripple’s XRP to become the third-largest cryptocurrency in terms of market cap. Next up on its target is the market-favorite Ether.
With the supply of Tether increasing every day, the native Bitcoin chain relations are also being severed. This is evident from the fact that USDT was earlier reliant on the Omni protocol but later warmed up to other protocols as well. Tether has experimented with Tron, Ethereum, and EOS protocols, and all these networks now boast a large segment of Tether transfers.
When it comes to new protocols, Ethereum has contributed lightning fast confirmation times, minuscule transfer fees, and fast deposit-withdrawal times.
Tether dominance in Ethereum to replace Ether
Anthony Sassano of EthHub said that Tether enjoys a far superior payment rail on Ethereum compared to other protocols. Tether’s chief technical officer, Paolo Ardoino, says that quicker transactions and low charges are what prompted Tether migration and traders to love these new characteristic features.
Tether community is witnessing a host of developments, and migration is chief amongst them. Thus, the effects of these changes must be studied, especially Tether dominance. Currently, Ethereum domination on a vast portion of the Tether supply can have big repercussions on the coin’s performance. Even though this is a positive development for Ethereum blockchain, the rising transaction fees is a cause of concern. Unfortunately, the increasing fee is driving out other apps.
USDT could soon overtake ETH for payments
The rising graph of Tether dominance in the transaction realm can very well lead to a total USDT dominance. If this trend remains, Ether would soon be replaced as a ‘De-Facto’ payment instrument in its home Ethereum ecosystem.
Some would argue that the shift from the Bitcoin blockchain was not in Tether’s best interest. However, considering the latest data and current developments, Tether dominance seems to be on the rise. Even if Tether dominance on Ethereum doesn’t materialize as predicted, it can anyway move on to a new chain.