Tether has transferred another $300 million worth of USDT from the bitcoin based Omni layer to ethereum.
“Tether will coordinate with a 3rd party to perform a chain swap (conversion from Omni to ERC20 protocol) for 300M USDt. Tether total supply will not change during this process,” they said.
Shortly after, Binance sent to Tether’s “treasury” 300 million omni based USDT. That was followed by Tether minting 300 million ERC20 USDTs which were sent to Binance.
That has increased eth based USDT to about $2 billion, around the same amount as on Omni once the 300 million is burned.
That’s up considerably from the beginning of the year when there were hardly any running on eth. It now so moving to become the dominant chain for Tether.
This increased usage of ethereum’s blockchain by USDT tokens has led to congestion due to limited capacity.
Transaction fees thus have been increasing as more bid for inclusion with it unclear whether this is a temporary situation or one that should be expected to continue.
That’s because USDT very suddenly rose to take up half of all eth capacity recently despite it running on eth for some months.
Now its gas consumption seems to have fallen to more reasonable levels, so congestion perhaps will ease but what effect this move to eth will have remains to be seen.