Solana (SOL) integrates Tether (USDT) tokens into its platform
- Solana is gradually growing into DeFi, as it only added a stablecoin feature in May last year.
- In October, it added Tether rival USDC into the platform.
- Now, the platform has made it easier for projects to migrate from Ethereum to Solana with ease.
The largest stablecoin by market cap Tether (USDT), is now available on the Solana (SOL) blockchain. After it was made known to the public, Solana (SOL) tokens increased by 16% to $16.06 but have been corrected slightly.
Tether’s chief technology officer Paolo Ardoino said the stablecoin is now available on 8 blockchains. According to him, the expansion will offer support to “a dazzling array of projects” in blockchain gaming, Web 3.0, and decentralized finance (DeFi).
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“The high-speed blockchain will enable holders of USDT to transmit their tokens quickly and cheaply” the announcement reads.
The other seven blockchains include Tron, Omni, Liquid Network, Ethereum, EOS, BCH, and Algorand. Tether now has a total market capitalization of $37 billion.
The stablecoin is pegged to the U.S. dollar and mostly used in the cryptocurrency market as a faster way of moving assets without involving traditional finance rails.
However, controversies have trailed Tether when it comes to assets backing it. The developers have been accused of not offering regular professional audits.
A faster alternative to the Ethereum network
As a proof-of-stake blockchain network, Solano offers a low-cost and high-speed alternative to Ethereum (ETH). The blockchain as developed to provide faster transaction speed, which is what the Ethereum network has been constantly battling with.
The increased popularity of decentralized finance has made the Ethereum network struggle to reduce congestion and high transaction costs.
The rise in the use of non-fungible tokens (NFTs) has also added to the pressure on the network. As a result, several other blockchain platforms have emerged to offer an alternative solution to the Ethereum network.
NFTs are digital assets, usually in the form of unique collectibles or virtual trading cards, whose authenticity and ownership can be verified through a blockchain.
Stablecoins like Tether are developed to stand strong against the price volatility of cryptocurrencies since they are pegged to the price of the US dollar.