Skip to main content

Tether CEO: 40% Of Blockchain Fees Go To Just Moving USDT

Tether CEO Paolo Ardoino has revealed a staggering 40% of all fees that users are paying on the major blockchains are spent to move USDT.

USDT Transfers Make Up For A Notable Portion Of Network Fees

In a post on X, Paolo Ardoino has shared the latest data related to USDT’s transfer fees share on the major blockchains. Transfer fee here naturally refers to the amount that senders have to attach with their network transactions as a reward for the validators.

Below is the chart shared by the Tether CEO that shows the trend in the percentage of these transfer fees that users on major networks are paying for making USDT transfers.

USDT Transfer Fee

Nine networks are included here: Ethereum, Tron, Toncoin, Solana, BSC, Avalanche, Arbitrum, Polygon, and Optimism. From the graph, it’s visible that the 7-day moving average fees share of USDT transfers across these chains recently hit the 40% mark.

Fees usage can serve as a proxy for transaction activity, so this high share would indicate strong user interest in Tether’s stablecoin. “Hundreds of millions of people in emerging markets use Tether’s digital dollar USDt daily, to protect their families from local inflation and devaluation of their national currencies,” notes Ardoino.

On most networks, the transfer fee is paid using the chain’s native token, even when the transaction involves a secondary coin. For example, ETH is required to make any kind of transaction on the Ethereum network.

Since stablecoins like USDT run on blockchains like these, senders also need to own the network’s main token to participate in transfers related to them. Among the chains included in the above data, however, there is one exception: Tron.

This year, the blockchain launched a feature that allows users to pay gas fees in other tokens, including USDT. As a result, Tron has established itself as the dominant network when it comes to the supply of the number one stablecoin.

“Blockchains that will focus on lower gas fees, allowing paying these in USDT will take over the world,” says the Tether CEO.

In related news, the on-chain volume associated with all stablecoins set a new record recently, as institutional DeFi solutions provider Sentora has pointed out in an X post.

Stablecoins USDT Volume

As displayed in the above chart, the combined monthly transaction volume of the stablecoins crossed $1.5 trillion last month, which is a new all-time high (ATH).

ETH Price

At the time of writing, Ethereum is trading around $3,600, down more than 4% over the past week.

Ethereum Price Chart



from Bitcoinist.com https://ift.tt/1An7Zj8
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more