Topic: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum? (Read 57 times)

In the pie chart you shared, I see that ETH has 45.38 percent, which leads among other networks. I’m curious, do you have any data or comparisons explaining why it's concluded that USDT is flowing back to Ethereum? If that's the case, then we should have a yearly comparison to see if there has been an increase from previous years to the current.

Perhaps you need to add a question, which is that although the success of the Tron network was due to TRC20-USDT, the fees are currently very high and there is no comparison between them and most blockchains, so why doesn’t the network try to reduce the fees, especially with the strong competition from Ethereum and the rest of the blockchains.

1. Yes, i do. Money is always shifting from one to the another altcoin. When the time is coming, i believe it will jump to the ethereum DEFI. The money is currently at the L1, then it will be moving to the ecosystem of L1 Blockchain. Just be patience.

2. I'm not invest on LSD and LRD tokens. I'd prefer to invest it directly on the defi product like Uniswap, ENS or anything related to the ethereum defi product. It seems to me LSD and LRD tokens have not attracted attention due to the limited utility on its token.

3. RWA trend. It's considerably new trend and not yet attracted a lot of attention.

1. It's already exploding, see ENS and other ecosystem token, already gained 100% increase compared to few weeks ago.
2. no
3. RWA and AI I expect will be pumped once narrative changed, i still believe that RWA highly undervalued as well as AI though AI also showing a sign of breaking out these days so I expect there to be a good run.

I've always opted for TRC20-USDT transfers between CEXs to minimize fees, despite my aversion to the Tron network. I have no interaction with Tron's DApps and am unfamiliar with its ecosystem. Moreover, the oversupply of USDT on Tron by Tether is a concern.

A notable shift has occurred recently, with Ethereum surpassing Tron in terms of USDT supply. ERC20-USDT now exceeds TRC20-USDT by a margin of 60.3B to 58.1B ^[1]. This can be attributed to factors such as Tether's withdrawal of USDT from weaker ecosystems like Algorand and Eos in favor of Ethereum ^[2]. However, this trend may signify a broader shift that remains to be fully understood.


Stablecoins, particularly USDT, are the lifeblood of the crypto market. Their recent influx into Ethereum suggests a strategic move by large investors. While the exact plan remains unclear, it's likely that whales are gearing up to drive the next wave of DeFi on the Ethereum network.

The DeFi ecosystem demands substantial stablecoin liquidity to power protocols and ensure smooth operations. This increased demand could potentially trigger a resurgence of Liquid Staked Derivatives (LSD) and Liquid Rewards Derivatives (LRD) on Ethereum, potentially surpassing their initial hype during the 2023-2024 crypto winter.

While it's challenging to pinpoint the next big mover in the LSD ^[3] and LRD ^[4] space, ETH remains a relatively safe bet. Any positive development within the Ethereum ecosystem is likely to positively impact ETH's price.


I'd like to know your opinion on this:

• Do you think the DeFi trend on Ethereum will soon explode?
• Are you investing in any LSD & LRD tokens?
• Besides DeFi, what trends do you think will be pumped in the near future thanks to the huge amount of stablecoins on Ethereum?

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References:
1. Ethereum reclaims USDT dominance against Tron after 2 years
2. Tether halts USDT minting on Eos and Algorand
3. Coinmarketcap: Top Liquid Staking Derivatives Tokens by Market Capitalization
4. Coinmarketcap: Top Restaking Tokens by Market Capitalization