- Bitfinex will launch Plasma, a blockchain with zero fees for Tether’s USDT transfers.
- Analysts say the move threatens Tron, which currently hosts most USDT activity.
- Plasma raised $373 million through sales of its XPL token and is starting with $1 billion in deposits.
- Rising fees on Tron and competition from Plasma may drive users to switch blockchains.
- Other blockchains, including Ethereum, could lose revenue, but experts see different impacts due to user habits and network structure.
Bitfinex is preparing to launch Plasma, a new blockchain that will enable zero-fee transfers of Tether’s USDT stablecoin. The move comes as Tether aims to attract more users by reducing transfer costs.
Plasma, supported by Tether’s sister company Bitfinex, has raised $373 million by selling its native XPL token. The blockchain service will begin operations with $1 billion worth of deposits. According to a report from crypto bank Sygnum, most USDT activity currently takes place on the Tron blockchain, putting it at the highest risk from Plasma’s entry into the market.
Sygnum analysts stated, “Tron’s revenue dominance comes almost entirely from its outsized share of USDT transfers. This dominance may come under pressure as Tether launches its Plasma chain.” Other crypto analysts noted that Tron could lose its leadership in the stablecoin market due to Plasma. Tron DAO, which manages the Tron blockchain, did not respond to requests for comment.
Tron currently handles about $81 billion in USDT and makes up 60% of all stablecoin transfers, serving both wealthy users and those in developing countries seeking alternatives to volatile local currencies. Nader Dirany, co-founder of Buy Bitcoin Lebanon, remarked, “The popularity of Tron is 100% mixed up with the popularity of Tether.” In recent months, Tron’s transfer fees have more than doubled to over $7 per USDT transaction, opening an opportunity for Plasma to gain market share.
Other blockchains may also be affected. Ethereum, for example, holds $67 billion in USDT, but faces different challenges. Paige Horinek from Serotonin explained, “The bigger danger is thinner liquidity, not lost revenue.” She estimated Ethereum could lose $230,000 to $370,000 in daily fees if it loses 30% of USDT activity, while Tron could face $1.6 million to $2.1 million lost per day in TRX token burning—a process that reduces token supply.
However, Amir Hajian of Keyrock suggested that Ethereum’s institutional users are less sensitive to transaction fees and may remain loyal due to the network’s stability and security. For these users, trust and track record matter more than cost savings.
The launch of Plasma follows similar moves by other stablecoin issuers. In April, Circle announced its own in-house payments network for USDC transfers, aiming to enhance stablecoin usability and capture more value from transactions.
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