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Cryptocurrency Ecosystem => Ethereum Forum => Topic started by: KryptoBull on December 01, 2024, 10:42:51 AM

Title: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: KryptoBull on December 01, 2024, 10:42:51 AM
I've always transferred TRC20-USDT between CEXs to save fees even though I don't like Tron at all. I don't even use any Dapps on Tron and don't know of any projects in this ecosystem. Honestly, I don't like the fact that Tether creates so much USDT on Tron.

Everything seems to have changed when the USDT supply on Ethereum surpassed the USDT supply on Tron, or 60.3B ERC20 USDT exceeded 58.1B TRC20 USDT [1]. This is due to many reasons, for example, Tether withdrawing USDT from weak ecosystems like Algorand and Eos to Ethereum [2], but this could accompany some trend that we are not yet aware of.

(https://s3.cointelegraph.com/uploads/2024-11/019365c6-3fed-7bf3-99b5-475a34c05e7f)

Stablecoins are considered the lifeblood of the market. When USDT is pushed to Ethereum, there must be some grand plan that whales are executing. I can't predict the exact plan, I'm just sharing my opinion, and I think whales will soon drive the DeFi trend on Ethereum.

The DeFi trend requires huge stablecoins to provide TVL for pools to ensure the liquidity of protocols. If this plan is implemented, we may see an explosion of LSDs and LRDs on Ethereum with a stronger intensity than the period when they were launched and introduced in the middle of the 2023-2024 crypto winter.

I'm looking into LSD [3] and LRD [4] tokens, and it's hard to predict which token will soon receive inflows from investors. ETH might be a safer choice because any development in the Ethereum ecosystem will bring upward momentum to ETH.

(https://www.tradingview.com/x/ECUtr8iY/)

I'd like to know your opinion on this:

References:
1. Ethereum reclaims USDT dominance against Tron after 2 years (https://cointelegraph.com/news/ethereum-surpasses-tron-blockchain-most-usdt-supply)
2. Tether halts USDT minting on Eos and Algorand (https://cointelegraph.com/news/tether-stops-minting-usdt-eos-algorand)
3. Coinmarketcap: Top Liquid Staking Derivatives Tokens by Market Capitalization (https://coinmarketcap.com/view/liquid-staking-derivatives/)
4. Coinmarketcap: Top Restaking Tokens by Market Capitalization (https://coinmarketcap.com/view/restaking/)

Note:
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: ABCbits on December 01, 2024, 11:15:17 AM
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?


1. Probably no. There's no major or exciting ETH network update, while many development going to ETH L2 instead.
2. I hold a bit of liquid staking token. But i'm still not sure about security or decentralization of liquid restaking token.
3. I've no idea, when considering what i said on 1st point.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: rdluffy on December 01, 2024, 11:23:56 AM

I'd like to know your opinion on this:
  • Do you think the DeFi trend on Ethereum will soon explode?


Good thread (+karma ;))

I'll only answer that one for now
The last big ETH trend was with EigenLayer in my opinion it's still happening, but I don't believe in anything else in the short term
ETH's high fees, even with several upgrades, is still a big barrier to entry for users
Many have migrated to SOL and especially to L2s
There are a lot of people chasing airdrops on ETH's L2s, and the money has migrated there
[/list]
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: MrSpasybo on December 01, 2024, 05:19:29 PM
  • 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?
1. I'm not sure how the stablecoins transferred to Ethereum will be utilized. Perhaps DeFi is the main direction and requires the most stablecoins, and will be able to take advantage of huge inflows.

2. I missed the LSD & LRD trend because I was worried about their sustainability. Currently, even if I had more capital, I would rather buy ETH or UNI instead of risking these trends.

3. GameFi and NFT are also potential trends that could soon be pumped. Or USDT could be used to pump ETH price.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: KryptoBull on December 02, 2024, 02:34:11 PM
I'll only answer that one for now
The last big ETH trend was with EigenLayer in my opinion it's still happening, but I don't believe in anything else in the short term
ETH's high fees, even with several upgrades, is still a big barrier to entry for users
Many have migrated to SOL and especially to L2s
There are a lot of people chasing airdrops on ETH's L2s, and the money has migrated there
I also see the rise of Sol and Eth L2s, but the fact is that ETH still attracts investors' attention with the goal of seeking profits. Saving transaction fees is part of investing, it's not the most important goal.

I believe that as long as ETH demonstrates its ability to generate profits and the Eth ecosystem has the best projects with the best price performance, investors will still seek it out. Gas fees on Eth have always been very expensive in every uptrend, but we still see investors willing to pay a 100 USD gas fee for a transaction as a normal thing in 2021 :)
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: rdluffy on December 02, 2024, 10:29:43 PM
I'll only answer that one for now
The last big ETH trend was with EigenLayer in my opinion it's still happening, but I don't believe in anything else in the short term
ETH's high fees, even with several upgrades, is still a big barrier to entry for users
Many have migrated to SOL and especially to L2s
There are a lot of people chasing airdrops on ETH's L2s, and the money has migrated there
I also see the rise of Sol and Eth L2s, but the fact is that ETH still attracts investors' attention with the goal of seeking profits. Saving transaction fees is part of investing, it's not the most important goal.

I believe that as long as ETH demonstrates its ability to generate profits and the Eth ecosystem has the best projects with the best price performance, investors will still seek it out. Gas fees on Eth have always been very expensive in every uptrend, but we still see investors willing to pay a 100 USD gas fee for a transaction as a normal thing in 2021 :)

The ETH network will probably continue for a long time as the most secure network, the first altcoin on the marketcap and the basis for many other projects
But I see some changes in this cycle, and something need to change about the fees
I use a lot of DeFi protocols, and I only do 1 tx maximum each month on ETH's network, because the high fees

Only thinking about investment, like buy and sell in exchanges or via ETFs, you'll not have to worry about the fees, but in general, for daily use, it's a pain to spend more than 1 USD in a simples tx or 5 USD in a contract
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: KryptoBull on December 03, 2024, 01:21:20 PM
The ETH network will probably continue for a long time as the most secure network, the first altcoin on the marketcap and the basis for many other projects
But I see some changes in this cycle, and something need to change about the fees
I use a lot of DeFi protocols, and I only do 1 tx maximum each month on ETH's network, because the high fees

Only thinking about investment, like buy and sell in exchanges or via ETFs, you'll not have to worry about the fees, but in general, for daily use, it's a pain to spend more than 1 USD in a simples tx or 5 USD in a contract
As I've mentioned, we've been through a period where transaction fees on Ethereum were incredibly high, reaching up to 100 USD, yet many users were still willing to pay those fees to use the network and seek out profit opportunities. Eth's popularity, reputation, and high liquidity truly set it apart from other platforms.

This gives me strong confidence in Eth's long-term existence and success, especially with the growth of DeFi TVL on Eth this season. Eth L2s may develop significantly, but they still depend on Eth's future. Sol is very popular, but it's only considered in the competition with Bnb and Xrp :)
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: Findingnemo on December 03, 2024, 05:35:12 PM
People used USDT in tron network to save fees and it really worked in the past but nowadays the fees on both networks are in the same range which is why people moving back to ETH network for more liquidity and more acceptance on exchanges or any other platforms as deposit.

There's no big thing is about to happen due to the reversal of trend and if there's a network that's more cheaper then it's gonna make big changes.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: Gurujebs on December 03, 2024, 06:19:44 PM
As I've mentioned, we've been through a period where transaction fees on Ethereum were incredibly high, reaching up to 100 USD, yet many users were still willing to pay those fees to use the network and seek out profit opportunities. Eth's popularity, reputation, and high liquidity truly set it apart from other platforms.

This gives me strong confidence in Eth's long-term existence and success, especially with the growth of DeFi TVL on Eth this season. Eth L2s may develop significantly, but they still depend on Eth's future. Sol is very popular, but it's only considered in the competition with Bnb and Xrp :)

Do you know why meme coins are so easy to built on Solana chain? That's because of the transaction fees, urs cheap and faster than ethereum. If assuming Ethereum chain is that faster like Solana, the excitement Solana is having right now would have been on ethereum but the fees are crazy and nobody want to go back to old tech.

Regardless, Ethereum is still good but the fees are killing that's why you see that it can't perform very well without layer2, you can see plenty of layer2 on ethereum but you wouldn't find one in solana because it's ready fast enough.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: KryptoBull on December 04, 2024, 08:23:04 AM
Do you know why meme coins are so easy to built on Solana chain? That's because of the transaction fees, urs cheap and faster than ethereum. If assuming Ethereum chain is that faster like Solana, the excitement Solana is having right now would have been on ethereum but the fees are crazy and nobody want to go back to old tech.

Regardless, Ethereum is still good but the fees are killing that's why you see that it can't perform very well without layer2, you can see plenty of layer2 on ethereum but you wouldn't find one in solana because it's ready fast enough.
I agree that the memecoins trend might not return to Eth in this uptrend, but that doesn't hinder Eth's success. DeFi, RWA, and NFTs will still be the key segments driving Eth's price increase as investors continue to trust this blockchain. The enormous liquidity of this ecosystem ensures that large investors can easily liquidate their Eth investments when needed.

The existence of Eth L2 also attracts some capital from Eth L1, but that only creates a more vibrant and expanded ecosystem around Ethereum. SOL price is increasing impressively, but it's still only being compared to XRP and BNB. It cannot yet challenge or threaten ETH's position in this market.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: yhiaali3 on December 04, 2024, 08:46:00 PM
I've always transferred TRC20-USDT between CEXs to save fees even though I don't like Tron at all. I don't even use any Dapps on Tron and don't know of any projects in this ecosystem. Honestly, I don't like the fact that Tether creates so much USDT on Tron.
It seems that this situation is starting to change now
Here is a screenshot taken today of some USDT fees on major networks, you can see that Tron fees are the highest, I think for the first time it is surpassing Ethereum fees

(https://www.talkimg.com/images/2024/12/04/pzImc.jpeg)

Currently the fees are around $5.7 while I saw a transaction this morning with a fee of $10, this is much more than Ethereum fees so I think this is the end of USDT on Tron.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: KryptoBull on December 05, 2024, 07:50:50 AM
It seems that this situation is starting to change now
Here is a screenshot taken today of some USDT fees on major networks, you can see that Tron fees are the highest, I think for the first time it is surpassing Ethereum fees

Currently the fees are around $5.7 while I saw a transaction this morning with a fee of $10, this is much more than Ethereum fees so I think this is the end of USDT on Tron.
We have a topic about USDT transfer fees on different blockchains for your reference.

According to the provided data, Trx doesn't support low-fee transactions, it's quite expensive. To get nearly free transaction fees, users need to stake TRX in their accounts to use a portion of the network's services. I hope I'm explaining this correctly and simply.

CEXs often have free transactions on Trx because they stake a large amount of TRX, so I don't think transaction fees are a major issue causing USDT to flow from Trx to Eth. There's something very big in the Eth ecosystem that's attracting stablecoins, and we'll know soon when the altseason officially starts.

Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: Mia Chloe on December 06, 2024, 07:08:04 PM
The shift in USDT supply from Tron to Ethereum is kinda interesting if you ask me and it's likely due to various factors including Tether withdrawing USDT from weaker ecosystems like Algorand and EOS to Ethereum. This move could be part of a larger strategy that may actually be driven by whales, to kinda improve the DeFi trend on Ethereum.

The idea  here is more like the DeFi ecosystem relies heavily on stablecoins like USDT to provide liquidity and TVL for pools. And so With the increased USDT supply on Ethereum, it's possible that we'll see a surge in LSDs and LRDs on the platform that may probably even surpass their initial hype during the 2023-2024 crypto winter.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: Stompix on December 06, 2024, 07:21:09 PM
If they don't manage to fix the fees issues, which is pretty hard to do unless you manage to move everything to L2, then defi directly on the ETH mainchain won't happen. people will not even now spend a few $ on simple USDT transfers, that's why they use tron, but a few tens of thousands doing smart contracts on ETH on top of these will again make the fees skyrocket and crash the volume.

I think sold has managed to claim the token crown, tron the cheap usdt transfers, ETH will have to stick to what it did best, being that stable second coin with a lot of legacy layers on it!

Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: KryptoBull on December 07, 2024, 09:13:09 AM
If they don't manage to fix the fees issues, which is pretty hard to do unless you manage to move everything to L2, then defi directly on the ETH mainchain won't happen. people will not even now spend a few $ on simple USDT transfers, that's why they use tron, but a few tens of thousands doing smart contracts on ETH on top of these will again make the fees skyrocket and crash the volume.

I think sold has managed to claim the token crown, tron the cheap usdt transfers, ETH will have to stick to what it did best, being that stable second coin with a lot of legacy layers on it!
I don't think high transaction fees will be able to hinder the explosion of DeFi on Eth, as LSD and LRD have been very successful, or DeFi 2021 was still a driving force for ETH's price increase. Although not really faster and cheaper than other blockchains in the market, Eth has the largest TVL, sufficient decentralization, and security for large financial institutions to trust and tokenize.

We will wait together for the changes in the Eth ecosystem in the uptrend. I'm also quite curious about how more than 60B USDT will be used to create a strong price increase for ETH.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: ZAINmalik75 on December 07, 2024, 10:13:53 AM
I've always transferred TRC20-USDT between CEXs to save fees even though I don't like Tron at all. I don't even use any Dapps on Tron and don't know of any projects in this ecosystem. Honestly, I don't like the fact that Tether creates so much USDT on Tron.

Everything seems to have changed when the USDT supply on Ethereum surpassed the USDT supply on Tron, or 60.3B ERC20 USDT exceeded 58.1B TRC20 USDT [1]. This is due to many reasons, for example, Tether withdrawing USDT from weak ecosystems like Algorand and Eos to Ethereum [2], but this could accompany some trend that we are not yet aware of.
This is a sign of big investments will be made in Ethereum and whales will either sell or buy more of the ETH network based tokens. Defi has already a trend and on Eth it will explode I am not investing in any of the tokens right now but in my opinion from LRD few coins have already pumped like Pendle and Altlayer etc,

LSD tokens are still under value and they can outperform once they saw big volume in them. Besides Defi AI and memecoins will pump in the near future now we also have depin projects too. DIversifying to increase the profit is better here.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: KryptoBull on December 08, 2024, 07:00:19 AM
This is a sign of big investments will be made in Ethereum and whales will either sell or buy more of the ETH network based tokens. Defi has already a trend and on Eth it will explode I am not investing in any of the tokens right now but in my opinion from LRD few coins have already pumped like Pendle and Altlayer etc,

LSD tokens are still under value and they can outperform once they saw big volume in them. Besides Defi AI and memecoins will pump in the near future now we also have depin projects too. DIversifying to increase the profit is better here.
+
I also think that many big trends will soon explode on Ethereum, as the money flow won't stay idle there until the end of the uptrend. Ethereum has always been the place where big trends develop: DeFi, NFT, GameFi, RWA..., simply because it has high liquidity and a huge number of investors.

I don't frequently observe each trend, but at least now the ETH price has increased to the 4K USD range, confirming the impact of this cash flow on the ETH price directly and indirectly. BTC's sideways movement around 100K USD will be an opportunity for the Ethereum ecosystem to grow explosively. Many other ecosystems are also very promising, but they still can't compete with Ethereum :)
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: Themepen on December 08, 2024, 07:41:29 AM
This is a sign of big investments will be made in Ethereum and whales will either sell or buy more of the ETH network based tokens. Defi has already a trend and on Eth it will explode I am not investing in any of the tokens right now but in my opinion from LRD few coins have already pumped like Pendle and Altlayer etc,

LSD tokens are still under value and they can outperform once they saw big volume in them. Besides Defi AI and memecoins will pump in the near future now we also have depin projects too. DIversifying to increase the profit is better here.
There is more interest in Ethereum now which means people might invest a lot of money in it soon. This could lead to big investors buying or selling more tokens based on Ethereum. DeFi is already becoming more popular and it is expected to grow even faster on Ethereum network. I am also not investing in any tokens right now but I think some LSD tokens are worth less than they should be and could do better when more people start buying them. And DeFi AI and memecoins will probably become more popular soon and new projects for decentralized finance are starting. To make most money it is good idea to put your money into different things. Means choose highly risky mid risky and low risky coins or tokens.
Title: Re: USDT is flowing back to Ethereum: Is a DeFi trend about to explode on Ethereum?
Post by: KryptoBull on December 09, 2024, 07:29:10 AM
There is more interest in Ethereum now which means people might invest a lot of money in it soon. This could lead to big investors buying or selling more tokens based on Ethereum. DeFi is already becoming more popular and it is expected to grow even faster on Ethereum network. I am also not investing in any tokens right now but I think some LSD tokens are worth less than they should be and could do better when more people start buying them. And DeFi AI and memecoins will probably become more popular soon and new projects for decentralized finance are starting. To make most money it is good idea to put your money into different things. Means choose highly risky mid risky and low risky coins or tokens.
Diversification is something we always hear about in the market whenever FOMO occurs. If love altcoins, investors should have a certain amount of money in ETH to ensure profits, then they can look for other opportunities, not the other way around.

As mentioned, I believe that the next layer of trends will revive and explode on Eth, not other blockchains in the market. Liquidity is always Eth's advantage because it will attract the participation of investors and project #DevelopmentTeam s.