Topic: Biggest problem is that stablecoins usdt and usdc only few blockchains (Read 161 times)

I want to highlight that there are also some decentralised stable coins out there which are different from USDT or USDC like kind another thing is USDT is not really used for payments rather the preferred trading pair that is the actual purpose why people use it on daily basis as I mentioned earlier in this thread.

It's also bad choice to safeguard from inflation from your local fiat there are better choices out there even if they don't want to invest in crypto due to volatility nature they have assets like gold and silver which will be more suitable as storage of value.

Stablecoins can be arbitrarily frozen by the companies issuing them. The lack of censorship resistance and decentralization is why I would rather avoid them but unfortunately they are becoming the preferred choice for making payments. Stablecoins are the antithesis for why Bitcoin was created. They may offer convenience, especially for those in countries where their own currency loses a lot of value, but the surveillance, compliance measures, and censorship that come along with it are massive drawbacks. Their adoption should be discouraged more than it is being done.

They've worked so hard to earn that much achievement on their projects. We have seen in the past the once the project gets the hype then it doesn't bother much about the upgradation of their fundamentals and their project. But as far as ETH and and SOL is considered they're giving so much of their efforts to solve the problem that are faced by individuals whether that are high fees or anything else.

So in order to retain in the market and to continue their era the have to make people to use their platform for transactions and they're doing it better.

USDC is safer i think since USDC is said to be more transparent about the accounting of the token


don't know it can get to $40 even $1 is too big for me i can't imagine paying $40 lol. And yes i see there are other stablecoin even without currency name like ampleforth but it is not available in many market. I wonder how many other stablecoin exist out there outside of mainstream market

Often it is seen that I want to deposit stablecoins like USDT and USDC on an exchange on a specific blockchain that blockchain does not support that exchange. As a result I have to convert to another coin and then deposit. As a result, I have to pay extra fee. So stablecoins like USDT and USDC should be supported on all blockchains.

There are some chains upcoming with their own takes on stables and with the part of USDC, chains like BASE make it really cheap and cheap when transferring. You can even send for free if you are using Coinbase.

I use USDC more compared to USDT because of the regulation news regarding USDT. I think it's better to use USDC with all the transactions.

You are absolutely right that usdt and usdc are highly versatile coins and bailable on numerous networks, making them convenient for bridging and exchanging across the chains. All prominent exchanges including Binance offer various options, it is the choice of user to select the desired network, however keeping the user experience straightforward is crucial for exchange.

You must be new here? But only if you came in early maybe you won't like it even more because there is only one available Blockchain for them and that would be ETH. The high gas fees in ETH is basically what annoys us the most and not only because they only support one Blockchain. So, don't complain now and be thankful instead that devs try their best to provide us with more options, and who knows later on, maybe they will add more to these? Because there are also a lot of new Blockchains now that are emerging in the space.

Anyway, I think Circle's USDC default chain is ETH but maybe you're right that they added XLM now? Cool. Even though it may not be cheap but this is what I'm talking about that they will still add more options. ATM, just use other stable coins with cheap Blockchains.

most people that used USDT in ethereum network usually transferring by large amount rarely I see people sending this token by the minimal amount i mean such transaction exists but usually have minimal purpose since sending USDT through ETH means its just wasting money with the fee of around $3 even right now after the dencun upgrade which heavily helps reducing the fee, before it was like $40 just to send USDT.

so if its few thousand dollar I guess it still make sense, but less than that better use l2 or other blockchain with significantly lower fee and I agree large amount of USDT just sitting in the wallet of exchange, most of exchange right now using pair of USDT anyway so these exchange need to have large amount of USDT just in case.

on the other hand I always wondered how many USDT is there circulating in other blockchain compared to the one thats available in ethereum, i'm pretty sure despite USDT also being frequently used in other blockchain the amount of circulating supply of USDT might not even near the amount of whats circulating in ethereum.
right now fortunately so many stablecoin created by smaller foundation exist around various less popular blockchain where there's no USDT contract deployed by tether by overcollateralizing their own version of stablecoin with USDT and few more stablecoin just to bring in stablecoin into their blockchain which helps a lot in some cases but undeniably the risk of depegging is there.

Solana is always congested and so it Ton as for now. Ethereum the transaction fee is high as compared to other networks. I only find convenience in using the Tron network for USDT transactions. BInance chain is good when transacting USDT from BInance exchange. I guess almost all big and known blockchain networks are being used by Tether. In future they might spread it to other networks which have a good marketcap and ecosystem.

either because obviously eth is bigger usage than tron so usdt in it is also has bigger user or because tx fee in eth is too high so people prefer them inside exchange than to be used for transaction

Even though stablecoins have a limited blockchain, USDT and USDC are often used in crypto transactions, whether it's sending tokens to exchanges, or to wallets, even exchanging tokens for other tokens, in my opinion this is just a matter of convenience in transactions. I think it's good. High or low Fuel costs are a very normal thing, and it depends on individual needs.

There are also l2 like optimism, arbitrum, bsc and even avalanche which is relatively cheap. I don't know what exchange you are using but most big and medium exchanges have several options different blockchain to choose from.
You probably change the exchange you are using, the problem is you not stablecoins.

If I am not wrong USDT on eth network volume is way higher than Tron or any other network simply because those are actually traded inside the exchanges not really used for the transactions such as payments so the liquidity of USDT on ETH network is high even when the fees are high cause it's irrelevant since USDT or in general the stable coins are most often used for trading purpose.

That is why the 24 hr trading volume is more than 50% of total marketcap value of USDT.

tron used to be the cheapest but it's gradually increasing its transaction fees. SOL and MATIC aren't very popular when it comes to sending stablecoin but BSC is the most common, we can see some campaigns in the forum rewarding USDT in BEP20. and its cheaper than in TRON as well. that's just what i noticed.

even withdrawing USDT BEP20 on several exchanges is cheaper than any other chain. i don't know how long it will stay this way with BSC but it's better to use it while its cheaper.

It's simply a matter of convenience to each person's usage behavior. In some special situations, people will still accept to pay expensive fees in exchange for what they need. But at the scale of the crowd, that is not always satisfactory to everyone, for the simple reason of prioritizing chains like TON, TRON, SOL,... because of fees and even L2.

The existence of stablecoins is also simple to understand for the convenience of user behavior. I see that after many years of participating in the crypto market, changes and adaptations always happen and bring closeness to investors, developers, users...

Yes, these blockchains you mentioned are being used in everyday cases mainly due to its low transaction fees or at least lower compared to the top coins. They also have large scale which shows how much they can handle any amount of transactions.

Like mentioned, liquidity is another factor why most people use these blockchains.

the stablecoin will eventually deployed in various blockchain anyway its just matter of time, probably the most difficult thing in making the stablecoin available in various blockchain is due to the fact that they need to add some supply in every blockchain, they need to keep the number of supply consistent with their reserved money, so they can't just deploy their token there, they also need to think about probably substracting and adding supplies from other blockchain too.
at least thats from my understanding about the reason why these stablecoin don't just deploy their stablecoin in other blockchain more specifically the EVM ones its quite literally just one step away from deploying the smart contract but they need to ensure certain things.
the blockchain that you mentioned at the time being are indeed the most utilized one, prominently tron, but right now even tron is having rather high fee, personally i'd like to use solana more these days and BNB.
the good feeling when we are using stablecoin that's popular and listed anywhere is the availability, if tron fee is high for sending stablecoin just switch over into using the other chain and we can easily figure out the transaction fee by just checking it.
ethereum is out of question, with the presence of layer 2 blockchain? i don't think its still a common practice to send stablecoin using ethereum, most people probably already long switched over to layer 2 which has the same exact mechanism as using ethereum anyway.

Support for new chains are constantly being worked on and added. As someone that has written and still write software code, it's safe to say that these things take time — especially when integrating an actual chain because there has to be plenty of compatibility requirements since not all chains are created the same. Aside stablecoins supporting a chain, exchanges have to do their bit to integrate those integrations as well. There's nothing you can do but hope an integration comes to XLM sooner rather than later.

USDT and USDC are available in almost all networks. You can bridge them easily among different networks or exchange it from the gas token.
If you are talking about the withdraw from centralized exchanges, the options can be limited considering the exchanges. The largest of all Binance can probably is capable of having 100s of withdrawal option for several networks for USDT but they just have 15. That's still better than many other exchanges as these exchanges prefers some network than other and boycott some. Having too many options can also be overwhelming for users. The fees can be higher or lower depending on the network used.