Tether goes live on the Solana blockchain.
Major Signals
- Tether recently announced that USDT would be integrated on the Solana (SOL) blockchain.
- CEO of DeFi project Serum which is hosted on the SOL network, claims it is a million times faster than Ethereum.
- Tether claims that Solana will allow users to trade USDT at speeds of up to 50,000 transactions per second.
- It also says its transaction costs are as low as $0.00001 per transaction.
Tether, the company behind stablecoin token USDT, has announced recently that USDT will go live on the Solana (SOL) blockchain.
Solana is a project that has been making headlines for the past six months (SOL). Solana, a decentralized finance (DeFi) blockchain, was developed by a team of former engineers from widely renowned companies such as Intel, Dropbox, and Qualcomm and was founded by Anatoly Yakovenko.
It claims to be a decentralized blockchain that provides the open infrastructure needed for global adoption (SOL). Some consider Solana as a potential Ethereum rival. Sam Bankman-Fried, FTX exchange co-founder and CEO of DeFi project Serum, which is hosted on the SOL platform, stated this and quoted the network's capability to handle 50,000 transactions per second as his reason for hosting on the web.
Serum, a decentralized derivatives exchange, was recently developed on top of Solana. Bankman-Fried told Camila Russo, host of the Defiant Podcast, that Serum chose Solana over Ethereum because of its superior speed and infrastructure. He said, "We need [a blockchain] that is a million times faster than Ethereum."
Tether claims that Solana will allow users to trade USDT at speeds of up to 50,000 transactions per second. It also says that transaction costs may be as low as $0.00001 per transaction and that this lower-cost, faster alternative to Ethereum would spur the creation of new DeFi applications and projects. Tether has already merged with some blockchains, including Algorand, EOS, Liquid Network, Omni, and Tron, in addition to Ethereum.
Many industry players, like DappRadar's Jon Jordan, claim that Ethereum 2.0 will eventually have critical advantages for decentralized applications as competitor blockchains proliferate to meet the needs of the growing DeFi market.
In the meantime, Tether has merged with layer-two networks like Hermez, which have grown in popularity as gas fees on the Ethereum network have risen.
