Every cryptocurrency trader or investor is typically known to exhibit traits of analyst or researcher. The average crypto trader investigates prices, cost, maintenance fees, transactional cost, etc., amongst a few other factors before committing or investing in one or more digital assets.
In a new research carried out, it has been discovered that users of the world’s leading stablecoin, Tether, are ditching the Ethereum network for Justin Sun’s TRON. The reason associated with this anomaly observed since the beginning of the year has been traced to the fact that the users are leveraging on the cheaper cost of transaction fee offered by TRON.
There’s still more Tether in Ethereum than TRON despite the new observation
The growth levels of the Tether stablecoin means that transactions affiliated with it are currently on the rise. The stablecoin, founded in 2014, has been tasked with a lot of functions like debt settling and has also been used by traders as stable assets. The network also claimed that the token is fully backed by cash and, as of today, has traded in more than $30 billion in volume.
The new research also suggests that despite the rapid rise of Tether users preferring to transact on the TRON network ahead of the Ethereum blockchain, there is currently more Tether on the Ethereum space than TRON. However, if TRON continues to offer Tether traders low transaction cost compared to Ethereum, it will take little time before the current order is reversed and TRON becomes the go-to place for Tether holders.
A critical look at transaction cost on the Ethereum network will see that they have solidly remained at an average of about $5 all through last year. On the other hand, TRON, whose transaction charges are pegged at less than $1, is much more comfortable for the users, hence the ditching.
Ethreum 2.0, DeFi boom, amongst factors associated with increasing prices
Despite the transaction fees of the network pegged at an average, analysts believe that Ethereum fees are currently on the high compared to what the market is offering. Since the release of Ethereum 2.0, the network has since improved on transaction speed and quality, also known as Serenity. Serenity has since allowed the network to witness a high level of interaction in its space, a factor that had seen its average transaction cost move from about $5 to $7 in less than 60days.
The Ethereum DeFi applications’ innovations have also been a factor associated with increasing activities in the network whose token is the second largest by Market Cap in the cryptocurrency world.
Unfortunately, the implications of high transaction fees might start to negatively impact the network and strengthen their competitors like TRON, whose CEO Justin Sun, had always been a firm admirer of the Ethereum network and wants TRON to emulate and rival them in the future. Transaction fees being at a high means that Sun can start to dream.