Tether sends USD 300 million to Binance

The stablecoin issuer, Tether, sent a large consignment of tokens to exchange Binance. The $ 300 million transaction, captured by Twitter's @whale_alert profile, according to the company, was made because they are making another Omni protocol chain switch to the ERC20.

“In a few hours, Tether will coordinate with a third party to make a chain exchange (conversion of Omni protocol to ERC20) for $ 300 million. The total Tether offer will not change during this process. ”

The change will make Omni-based USDT tokens ERC20-based tokens.

The exchange may have occurred because Binance, one of the largest USDT exchanges, has changed Omni-based addresses to ERC20.

Other reasons can be found in the reports of the Poloniex and Huobi exchanges.

According to Poloniex, the ERC-20-based USDT brings more flexibility, speed and is cheaper than Omni.

Huobi claimed that the Ethereum-based USDT has an advantage for institutional traders by having smoother deposits and withdrawals.

Another advantage to note is that the ERC-20-based token enables interoperability in Ethereum-based protocols and decentralized applications.

Even before the move, the number of USDT transactions on the Ethereum network had already reached record highs. They even used 25% of the entire cryptocurrency network. Because the Tether is a token, it requires a large amount of gas. Currently about 40% of USDT tokens are circulating on the Ethereum network. These facts prevent a larger fit of transactions on the network. And with this change the numbers can increase and the Ethereum blockchain will face new challenges.

Ethereum has already reached 93% of its capacity. This suggests that there is little room for other projects to use their blockchain.

Vitalik Buterin, co-founder of the Ethereum Foundation, in an email to Bloomberg, spoke about the growing use of Ethereum and the rising cost of transactions.

“The Ethereum blockchain has been 'almost full for years'. I think it's still good to develop applications, but anything substantial should be developed with scalability techniques in mind so that it can survive the higher transaction rates that would come with a growing demand for Ethereum. In the long run, Ethereum 2.0 sharding will surely fix these problems. ”
While the new version of Ethereum is not released, scalability issues and high rates may prevent potential decentralized application projects from using the network, which favors cryptocurrency competitors.