Tether, despite its controversy, is becoming an increasingly important token on the cryptocurrency market. In order to grow and satisfy his users, he gradually abandons the Omnia protocol in favor of the Ethereum blockchain.
Tether moves away from Bitcoin blockchain
Recent Arcane research has shown that as Tether’s supply reaches new heights, it begins to move away from the original Bitcoin blockchain. Tether was initially based on the Omni protocol on the BTC blockchain, and then gradually opened up to other protocols. Over time, USDT began to use the Ethereum, Tron and EOS networks, and over the past year they have taken over a significant portion of its transaction activities.
The Ethereum network gives you more options
While Bitcoin’s dominance in the cryptocurrency market is indisputable, bitcoin blockchain-based protocols are slowly becoming less attractive. The high popularity of the oldest cryptocurrency means that the number of transactions is too large to be handled by protocols such as Omni. For this reason, many cryptocurrencies have started to transfer their coins to other blockchains, e.g. Ethereum.
Tether’s transition to the Ethereum protocol was due to faster confirmations, shorter payouts from exchanges, and lower fees compared to the Omni protocol.
Anthony Sassano, founder of the EthHub analytics company, noted that the Ethereum network is a much faster solution for Tether and other stablecoins to make payments.
Paolo Ardoino, CTO at Tether, He stated in turn, that transaction fees and confirmation time were the main reasons that led Tether to switch to Ethereum. He also wrote that the company must meet the expectations of its users, which is why it makes the necessary improvements.
We really respect Omni because it was the basic protocol that allowed us to create Tethera. However, we had to give traders what they asked for.
According “Transparency page” Tethera, the company currently has approximately $ 1.3 billion in circulation on the Omni protocol and nearly $ 5.8 billion on the Ethereum blockchain. In total, the company has assets worth over USD 9 billion. It follows that the original protocol by which Tether was created accounts for just over 10% of the total. The ETH network, on the other hand, took over 50% of its activity.