Tether (USDT) Launches on Avalanche Which is Burning Fees at Increasing Speed
The Largest stablecoin with a market cap of nearly $59.5 billion, Tether is further expanding to now cover Avalanche as well.
Launched in late 2014, Tether is already supporting Bitcoin, Ethereum, EOS, Liquid Network, Omni, Tron, Algorand, and Solana blockchains. Paolo Ardoino, CTO at Tether said,
“We are delighted to initiate USDt’s launch on Avalanche.”
“The launch of USDt on Avalanche will provide traders with a fast, cost-effective way to transfer USDt across different exchanges.”
Avalanche is a decentralized smart contracts platform, on which activity has been surging ever since the launch of the Avalanche-Ethereum Bridge (AEB) earlier this year. Since the launch in Feb., 100,000 unique addresses have been created, and users have executed more than 2 million smart contract transactions. Emin Gün Sirer, Director of the Avalanche Foundation said,
“Having USDt launch natively in Avalanche adds another core infrastructure to the rapidly expanding DeFi ecosystem on the platform. It will be a welcome addition to users and developers propelling this continued growth.”
Avalanche’s native token, AVAX, is a hard-capped asset used to pay for fees on the network. It also secures the platform through staking.
With a market cap of $633 million, AVAX is sitting at 40th place and currently trading at $34.73.
The network went through an upgrade in March that reduces the fees by 50% but still accounts for some of the highest fees among the layer-1 solutions, showing real user demand. Fees on Avalanche are burned, which means it benefits all network participants.
Avalanche users have actually burned more fees on smart contract transactions in the six weeks since the Apricot Phase 1 Upgrade than in the first six months of its mainnet.
“Fees for Avalanche users got significantly cheaper, but the burn rate increased as more users, applications, and assets joined the network,” noted Patrick Sutton & Farid Rached of Ava Labs.