In the past few hours, the digital stablecoin “Tether” has reached $50 billion in market capitalization.

Which is an impressive milestone for the controversial stablecoin.

It is worth noting that the market value of the “tether” currency has grown in record time from $30 billion in February to nearly $51 billion at the time of writing this article.

As it is known, the Tether company is expanding its digital currency, Tether, to be present in different and diverse blockchain networks, but the most prominent supportive networks for Tether “USDT”, which are popular among users, are Tron and Ethereum.

Recently, the number of Tether on the Tron blockchain exceeded its counterpart on the Ethereum blockchain, with a value of more than 1.6 billion dollars.

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Why?

As a reminder, “Tron” is a blockchain platform that accepts construction on it, and it works similarly to Ethereum, meaning that “Tron” uses smart contracts, decentralized applications “dapps” and digital wallets, but the Tron Blockchain depends more on the field of “entertainment.”

The vast majority of activity on the Tron blockchain takes place in gaming and gambling applications, according to to report “DappRadar” released February 2020.

Tether is a stable digital currency pegged 1:1 to the US dollar, which means that the value of the currency is designed to remain fixed.

However, there is some debate about whether Tether is really backed by US dollar reserves, as the company’s reserves have never been independently audited, and recently settled a fraud investigation with the New York Attorney General’s Office.

Despite the controversy, the stable digital currency Tether has been able to attract and gain huge popularity, especially in Asia, according to Chainalysis.

The cryptocurrency “USDT” is still the most traded currency there by a large margin.

The digital stablecoin Tether is in heavy use for a number of reasons because it is useful in exchanges, with trading pairs pegged with Tether being a popular way to set prices in fiat currency, such as the dollar or the yen.

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At the moment, huge amounts of USDT are used more on the Tron blockchain than on Ethereum.

Ethereum is in some ways a victim of its own success, as the network is used by so many people, which has made it work slowly.

In order to transact on Ethereum, one needs to pay a “gas fee” which is the variable cost of using the network, which goes to the decentralized group of people who help keep it running.

With so many people using Ethereum, the cost of making transactions becomes high.

Therefore, users turn to Tron network.

Jeremy Ong, Head of Business Operations at Delphi Digital, a crypto research firm, said:

The use of Ethereum has been really expensive due to the high gas prices.

In comparison, Tron network is very cheap in similar uses.

Ong added that transferring Tether from one trading platform to another is very common, and doing so on the Ethereum blockchain is expensive.

So users do it via the Tron blockchain, and they pay much less.

He went on to explain:

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The Tether USDT on the Tron network is used primarily for transfers between trading platforms.

He also told Ong that this would be temporary.

Where he continued by saying:

I see Tron as a helpful solution for the convenience of trading platform traders.

So far, we are still waiting for Ethereum scaling solutions to gain network influence and adoption among central trading platforms.

The Ethereum scaling solutions that Ong is referring to relate to Ethereum 2.0, which carries a long-planned upgrade to the Ethereum network that hopes to solve existing network problems, such as high costs.

Until that works, cryptocurrency traders will likely continue to put their billions elsewhere.

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