Since Tether launched their stablecoin USDT on the ethereum blockchain, USDT on Bitcoin has dwindled to just $1.5B. Why this growth in supply never took place on bitcoin?
Well, ethereum transactions are much cheaper, they confirm within seconds, which is very useful in arbitrage scenarios. Moreover USDT on ethereum can be borrowed and lent on defi protocols like AAVE.
It's clear that USDT on ethereum is much more useful than USDT on bitcoin's Omni layer.
The numbers don't lie. USDT market capitalization never went above $3B when it was running on bitcoin, but USDT on ethereum is now at $4.5B.
