Tether users on the Ethereum network have taken to their heels as Ethereum’s network fees hit rooftop levels yet again. According to new data, Tether-based transactions on the Tron network are starting to unseat that of Ethereum’s on a daily basis.
Tether, the most popular stablecoin, and third most valued cryptocurrency by market cap has been processing the larger number of its transactions on Tron, however, only a year ago, Ethereum was the happening blockchain for Tether users.
According to the Blockchain data provider CoinMetrics, the source of this data, Ethereum holding 50% more Tether than its “rival” Tron, has not stopped the latter from processing more transactions on a daily basis since the start of the year.
Tether, the largest provider of dollar-pegged stablecoin has benefited from a 4x increase in circulating supply over the last year, bringing the total circulating supply within its network to $25 billion. This ever-increasing growth is valuable for any network for both Tron, Ethereum, and Solana, all of which Tether trading is being carried out. However, exorbitant fee charges may force users to pick the better alternative, which Tron is currently presenting itself to be. This pattern further goes to show that affordable network charges play a huge role in Blockchain adoption.
Ethereum’s exorbitant fee charges have been a topic of discussion for the longest time. The sky-high transaction cost has heightened the rivalry between both Blockchains over the years. Both Ethereum and Tron have achieved great success over the years. On multiple occasions, one has outperformed the other, even the CEO’s of both networks have had an occasional exchange on Twitter, yet the fight for user adoption has only just begun, as the future of both networks remain equally promising. Last year, the Tron network revealed plans to dive into the world of Decentralized Finance, an industry that Ethereum has long been dominating.
In 2020 alone, the Ethereum network benefited from a 300% upsurge in transactions. With Tron’s flexible fee charges, it is no doubt a top competitor in the DeFi market. But Ethereum isn’t lacking behind. The network upgrade which has the potential to contain network congestion and create a more affordable fee structure is already in motion. Whichever efficiently draws in the larger pool of users in the future remains to be seen.