Tether stated on Tuesday that for the platforms of the DeFi ecosystem, including those that use their tokens, a smooth transition is essential.
Stablecoin enterprise Tether, following an official statement by USD Coin (USDC) issuer Circle Pay, has now openly declared its support for Ethereum's upcoming Merge upgrade and transition to a proof-of-stake (PoS) consensus mechanism-based blockchain.
The statement coincided with a stablecoin opposition’s promise only to support the widely-expected update to Ethereum.
According to a statement issued by Tether on Tuesday, which termed the Merge one of the most important moments in blockchain history, the Merge will proceed in accordance with Ethereum's upgrade timetable, which is planned to occur on September 19.
Tether further added their opinion that the shift to POS shouldn't be used as a weapon to confuse or hurt the ecosystem to curb any disruption to the community, especially when employing their tokens in DeFi projects and platforms.
They also said they would pay special attention to this event's development and planning and enable POS Ethereum in accordance with the scheduled time. They think a seamless transition is crucial for the long-term stability of the DeFi ecosystem and its platforms, including those that use their tokens.
Even though the post-Merge Eth2 statement was only made today, the stablecoin issuer's chief technology officer, Paolo Ardoino, said in July that they expected to back it.
According to CoinGecko, Tether (USDT) is now the biggest stablecoin in the cryptocurrency space with an overall market valuation of $66.6 billion, with USDC treading closely at $54.1 billion.
Source: CoinMarketCap
On Ethereum's current proof-of-work (PoW) network, both stablecoins contain a sizable part of their circulating supply. At the time of writing, USDT has $32.3 billion, while USDC has $45.1 billion, respectively.
The demonstration of backing, in this case, should lead to a less arduous transition for the Ethereum, Tether, and USD Coin ecosystems and the larger crypto market in total, given the magnitude of these stablecoins and their dominance over the stablecoin market.
Meanwhile, Ethereum co-founder Vitalik Buterin recently gave a warning, their impact could prospectively give rise to problems in upcoming Ethereum hard forks if centralized organizations like Tether and Circle choose to utilize the forked chain of their choosing rather than recommendations made by the Ethereum community.
Buterin further expressed that that issue will develop into a pressing issue in the near future. He said the chain consideration as Ethereum in USDC’s decision could become a significant factor in coming up with future contentious hard forks.
The Goerli testnet will host Ethereum's final Merge trial this week, and if everything goes according to plan, the Sept. 19 Merge date shouldn't be postponed.This is an exciting and intense development on both Tether and Ethereum parts, and there's so much to look forward to.
Taking all the opinions regarding this reality, what do you think this support will change and give rise to in the cryptocurrency world? Please share your views in your comment section.
