- Tron loses 23% of its $4.3 billion Tether reserves to Ethereum
- Tether shifted over 1 billion in USDT from Tron’s network
- The swap was done in conjunction with a third party
Tron News Today – The Tron network has reported a huge reserves loss. The network has now lost a huge percentage of its USDT reserves to the Ethereum Blockchain. According to the report, Tron lost over 23% of its USDT reserves to the Ethereum network. Until press time Tron held a USDT reserve of $4.3 billion. But this figure has been drained by a whopping 23% following the report.
The report came to light when stablecoin issuer, Tether announced that it shifted over $1 billion in USDT from the Tron network to the Ethereum network. This move took place during an early morning chain swap in conjunction with a third party.
Tether Announced Via its Twitter Handle
According to reports, the stablecoin issuer Tether announced a chain swap on August 20 in conjunction with a third party. The swap happened between Tron and Ethereum. Tether moved a whopping $1 billion in USDT from Tron to Ethereum. Here is how it put it on the Twitter post:
“$1billion in USDT has been swapped from Tron to Ethereum in conjunction with a 3rd party.”
We understand that the token transfer drained more than 23% of Tron’s USDT reserves. As stated above, Tron’s UDST reserves previously stocked the $4.3 billion mark. But it has now been drained by a huge margin after the chain swap. At press time, the price of Tron was changing hands at $0.026948 having gained 0.01% over the last 24-hours.
The Move Pumps Up Ethereum’s USDT Reserves
The move by Tether has helped to pump the Ethereum network. Because $1 billion USDT was moved to Ethereum, its Tether reserves have now hit a new high. Recall that more than half of the $13 billion USDT in circulation already resides on the Ethereum Blockchain. Now, this figure has pumped up after the swap. Ethereum has since been a hotspot for DeFi (decentralized finance) projects which automatically makes it a popular place for the USDT token. Hence, we can agree that Tether has played a huge role in the recent congestion on the Ethereum Blockchain. In any case, the rise of the Ethereum network continues.
Meanwhile, the Tron network takes a step back in USDT reserves. Big-dollar USDT swaps and billion-token burn picked up by the Whale Alert Twitter account suggest that Binance is likely the third party that carried out the latest swap or transfer. The Whale Alert Twitter account is an exchange-tracking platform that tracks digital funds transfers.