Tether Launches USDT On Ethereum Rival Solana Blockchain
Tether’s USDT tokens have launched on the Solana blockchain network, according to a recent company release.
Solana Welcomes USDT Holders
This Tether integration with Solana would enable users to exchange Tether tokens at speeds higher than 50,000 transactions per second. Transaction fees are expected to be as little as $0.00001 per transaction. Per the release, this will aid the growth of high-speed, low-cost applications, including those in the decentralized finance (DeFi) space.
Tether already has integrations with Algorand, Ethereum, EOS, Liquid Network, Omni, Tron, and Standard Ledger Protocol. Solana is the eighth blockchain to support Tether.
USDT is a stablecoin pegged 1:1 to the US dollar. Stablecoins like Tether is designed to bypass the price volatility of most cryptocurrencies. They are also used to move funds to and from platforms without the hassles of high costs or slow transaction speed.
Tether holders can also earn interest on their tokens if they lend out their stablecoin, making it a viable financial space.
Tether's CTO, Paolo Ardoino, said that the stablecoin would roll out different projects that will support the growth of decentralized finance (DeFi), trustless and inter-connected Web3.0, and blockchain gaming.
Ethereum’s high gas fees and network congestion have seen the growth of alternative smart contract-enabled blockchain networks. Ethereum’s unique capabilities of facilitating decentralized financial services and non-fungible tokens (NFTs) have made it a giant in the altcoins sector.
But the delay of its Ethereum 2.0 upgrade has seen many users begin to explore more cost-efficient projects like Solana.
The company founded in 2017 by Anatoly Yakovenko has quickly established itself as a major Ethereum rival due to its higher transaction speed and lower cost- two key areas Ethereum is having challenges with. The proof-of-stake blockchain network is highly favored amongst developers as they can connect their projects from the much older network to Solana.
Solana integrated stablecoin functionality in May 2020 and added its first stablecoin USDC in October of the same year. Following the news, Solana’s digital token SOL surged 16% from $13.81 to $16.06. Market corrections saw it slump to $15.26.