This is a contributor content by Andrew A., Chief Marketing Officer at Weltrade.
In this fast-evolving world of cryptocurrency, user retention and online engagement mean everything when growth and profitability are in question. Among the strategies through which crypto services have tried to tackle these issues is the integration of several blockchains for popular cryptocurrencies. Currently, one of the most visible trends in this area is the extension of Tether-also called USDT-across various blockchain networks.
Initially, Tether was issued on the Omni Layer protocol on the Bitcoin blockchain in October 2014. Then, in September 2017, Tether finally launched an ERC-20 version of USDT on the Ethereum network, enabling access to the cryptocurrency for many more users and allowing new integrations. Recent expansions of the likes of TRON, EOS, Algorand, Binance Smart Chain, and Solana reshape the landscape for stablecoins as a whole and serve to prove just how integrations could give a chain a fresh kick in userbase, transaction volume, and market standing.
Case: USDT Launch on Single Blockchain—ERC-20 to Build Trust
Immediately after its introduction on the ERC-20 blockchain of Ethereum, USDT grew into one of the most popular stablecoins in the market. At that time, Ethereum was considered one of the top blockchains hosting dApps and still boasts one of the largest ecosystems measured by total value locked.
Although ERC-20 USDT was a much stabler offering for many, as opposed to only volatile cryptocurrencies, it came with its own pitfalls. The popularity of Ethereum meant that congestion in the network and high gas fees provided a real impediment to the execution of small transactions, with important effects in emerging markets or even the “crypto winter” of 2019, in conditions where onboarding new users uphill, the high charges reduce adoption possibilities, with users and platforms scouting the market for affordable and speedier blockchain alternatives.
Despite complaints about the fees, many users continued depositing and trading ERC-20 USDT, believing in the overall market belief of Tether as a robust stablecoin. But again, a clear message came from that environment: scalability and lower costs were urgently needed to promote stablecoins for day-to-day transactions and broader adoption.
The Expansion to TRC-20 and BEP-20: The Game-Changer for User Engagement
While the blockchain ecosystem kept evolving, two new chains came along-Binance Smart Chain, commonly known as BEP-20, and TRON, commonly known as TRC-20-which solved Ethereum’s scalability and cost problems. Both blockchains had very low transaction fees and faster processing time; hence, they were perfect for micro-transactions and increased ease of USDT adoption.
TRC-20 Integration
USDT was integrated into the TRON blockchain (TRC-20) by Tether in April 2019, offering high scalability and lower transaction fees compared to Ethereum. This move opened up new opportunities for users seeking faster, cheaper stablecoin transfers and contributed to the rise of decentralized applications on TRON—particularly in gaming, gambling and content distribution.
Integration of BEP-20
By late 2020, Tether expanded USDT onto Binance Smart Chain (BSC) using the BEP-20 token standard, which transformed users’ access to and interaction with stablecoins. Because BSC is closely linked to Binance exchange, this integration greatly increased accessibility for retail users around the globe. With BSC offering a notably cheaper alternative to Ethereum, the BEP-20 version of USDT quickly attracted a broader user base, especially among those involved in DEXs projects and yield farming.
Deposits and Transaction Growth: The Direct Result of Multi-Blockchain Support
When USDT started expanding into TRC-20 and BEP-20, it became quite obvious that with the addition of new blockchains, influences on user activity, capitalization and transaction volumes spring into action. Probably the most visible result was a sharp rise of deposits on platforms that supported multi-chain USDT.
Real Example: YouHodler’s Story
Probably, the best example is crypto platform YouHodler, which had to fight for users in 2019 during so-called “crypto winter.” YouHodler provided really competitive Savings Accounts for all kinds of cryptocurrencies, even for meme-coins such as DOGE. Despite partial success, because of the high transaction amounts on ERC-20 and OMNI, user growth reached its ceiling quite fast.
BSC Strikes
The moment YouHodler integrated Binance Smart Chain, or BEP-20, the impact was immediate. On the very first day of the announcement, more than 100,000 USDT in deposits poured in through BSC. Within the first week, that figure jumped to 1 million USDT, and by the end of the first month, BEP-20 deposits exceeded ERC-20 by 300%.
TRON Takes Over
Eventually, growth leveled again and further integrations were in place. When YouHodler announced the support of TRC-20 USDT, the results were even more astonishing: in its very first week, TRC-20 deposits reached 1.5 million USDT, placing TRON at the top of the most popular networks for stablecoin deposits on the platform.
Other Chains?
YouHodler integrated Solana and Polygon too, but none of those even came close to TRON and BSC in terms of deposit volume. According to the team at YouHodler, the major reason is a trust in a brand: Ethereum, Binance, and TRON are more well-renowned, and their reputation precedes itself-many naturally use those chains.
For exchanges and platforms, receiving deposits in USDT across blockchains is differentiation, user choice, and hence more transaction volume. This was evidenced quite unequivocally with the deposit spikes YouHodler witnessed whenever they onboarded a new and reliable blockchain network.
The Role of Blockchain Interoperability: More Than User Acquisition
The migration from a single blockchain to integrations of multiple chains has more than the effect of just increasing deposits or attracting new users; it actually fortifies the ecosystem through overall blockchain interoperability.
A user could begin, for example, using USDT on ERC-20; as the needs evolve, they may head toward TRC-20 or BEP-20, depending on their platform or wallet. This is where Tether gets a boost, enabling it not only to appeal to the individual user’s needs but also make sure it stays relevant across a wide spectrum of blockchain ecosystems. In this way, it retains long-term users as they migrate from one blockchain to another without having to switch over to another stablecoin.
Furthermore, multi-chain support is the future of decentralization. The more variants of blockchains that exist for users, the easier it will be to access a variety of financial products; from decentralized exchanges and lending protocols, stablecoins such as USDT reap benefits in terms of liquidity and presence on more crypto networks.
Managing Multi-Blockchain Support: A Challenge
However, as with every big changeover, the integration of USDT across chains has its set of problems. Every blockchain has its own nuances and differing technical specifications, which makes a seamless user experience across chains somewhat complex.
For example, this requires cross-chain bridges for USDT to move between ERC-20 and BEP-20, TRC-20, adding extra liquidity and security vulnerabilities. Each platform supporting multi-chain USDT should ensure that its users have the necessary tools to move between chains easily, safely, and inexpensively.
Apart from this, another challenge is maintaining compliance over diverse regulatory jurisdictions. Each blockchain creates its unique regulatory challenges, for which a business has to be ever watchful to avoid legal tangles.
Conclusion: Multi-Blockchain Integration as a Catalyst for Long-Term Growth
Success means the transition of USDT from ERC-20 to BEP-20 and TRC-20, showing that new blockchain integrations are what shape the fate in terms of the growth of a cryptocurrency. The multiple-network approach has widened Tether’s reach, with more significant transaction volumes and improved access-outcomes reflected in the real world: YouHodler reported dramatic spikes in user deposits and engagement after the addition of BSC and TRON.
Crucially, for the purpose of satisfying 99% of a crypto audience, three blockchains stand out:
- Ethereum (ERC-20)
- TRON (TRC-20)
- Binance Smart Chain (BEP-20)
Statistics on USDT minting and circulation, such as that tracked by DeFiLlama, reinforces this, placing Ethereum in the top spot – followed closely by TRON, with Binance Smart Chain in third place, though far ahead of many other competitors.
In the future, it will be interesting to see how other cryptocurrencies will implement similar multi-chain strategies in order to fuel growth. For businesses, this is a clear lesson: adaptability, and having a multi-chain approach, can be drivers of user acquisition and retention in the fast-paced world of crypto. By integrating the blockchains that users already trust—offering speed, low fees, and brand recognition—companies set the stage for robust, long-term success.
Read Also: Cloud-Based Bitcoin Miner in a Fintech App: The YouHodler Experience
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