More and more Tether (USDT), the world’s largest stable coin, are moving to the Ethereum network from the Bitcoin based Omni network, as recent data shows. The number of USDT tokens ‘minted’ on the Ethereum network is currently at 47% and it is only a matter of time before the ratio surpasses the Omni-based USDT tokens. Tron (TRC-20) based USDT tokens rank third with 0.4 Billion USDT tokens and EOS follows with 0.005 billion USDT tokens.
ERC-20 based USDT tokens to surpass Omni based tokens
At the end of 2017, some of the developers and investors started moving their USDT tokens to ERC-20 standard as the fees on Bitcoin (BTC) rose significantly. Since the start of 2019, the number of tokens on the ERC-20 standard has grown exponentially and that trend seems to continue for the foreseeable future.
Omni based USDT tokens set to relinquish the throne to ERC-20 based tokens (Source: Coinmetrics)
According to data from Coinmetrics, a cryptocurrency analysis firm, of the total 4.1 billion USDT tokens, Omni protocol holds 2.15 billion tokens, representing a 28% decrease since the number peaked on the platform in mid-2019. Ethereum-based USDT tokens amount to 1.97 billion USDT tokens – over 95% increase since February.
Ethereum superior option to Omni protocol
Tether is mostly used for trading purposes and traders looking for arbitrage opportunities. Ethereum’s offers a range of more suitable features than Bitcoin-based Omni protocol such as
“faster time to first confirmation, faster exchange withdrawal and deposit times, and lower fees.”
Ethereum also boasts of robust wallet development, an active development community and a vast array of tools and infrastructure supporting the ERC-20 protocol. Omni on the other hand, has seen developers slowly abandon it, leaving it unmaintained for long periods of time.
In July this year, Binance, the largest exchange by volume traded, effectively changed their Omni-based tokens to ERC-20 standard tokens for their customers. The exchange further stated they would not be accepting Omni-based USDT tokens.