- Tether has given up on building and deploying its own blockchain network.
- USDT finds significant usage on existing chains, leaving the company satisfied with how its stablecoin is utilized.
As an analyst with extensive experience in the blockchain industry, I find Tether’s decision to abandon its own blockchain network intriguing. Given my years of observation and understanding of market dynamics, it seems that Tether has made a strategic move by focusing on leveraging existing networks instead of creating another one. This approach demonstrates a level-headedness that comes with experience, as they acknowledge the saturation of the blockchain market and the existence of robust and reliable networks.
Tether Inc., the creator of the popular stablecoin USDT (Tether Dollars), has abandoned its ambitions to develop its own blockchain. The decision was made due to the current market being overly saturated, making it unwise to introduce a new network at this time.
Paolo Ardoino, CEO of the stablecoin issuer, shared his thoughts with Bloomberg about abandoning their plans. In essence, he expressed that while his team excels in technology, he believes that blockchain technologies may eventually become commonplace or standard in the future. Given the existence of excellent blockchains currently, Ardoino thinks launching another network might not be the best decision at this time.
USDT’s impressive market capitalization of $117 billion, without a doubt, underscores the company’s contentment with its blockchain-agnostic approach. Tether’s executive, Ardoino, stated this, emphasizing that their stablecoin operates across various blockchains such as Ethereum and Tron, in addition to several layer-2 chains. This flexibility enables users to make transactions between them using the technology of these different platforms. Notably, Tron manages about 49% of the USDT circulating on its own, catering to a vast number of users with their transaction and remittance requirements. Ardoino further clarified that Tether is comfortable with its stablecoin being used across other blockchains as long as they prioritize “top-tier security and sustainability.”
USDT Is Already Massively Used on Popular Blockchains
Among the many blockchains available today, only a few see significant activity. Currently, the focus in the blockchain community is on interoperability, high transaction speed, and low fees because these qualities attract the most users. However, Ethereum stands out due to its early lead in the market. Tether, which has seen massive usage on existing decentralized platforms, has chosen not to launch on a new blockchain for this reason, prioritizing efficiency with those that offer optimal performance.
According to Ardoino, his company sees blockchains as fundamental infrastructure, or “transport systems,” for their primary service. To support this, they recently transferred the USDT stablecoin to the Aptos blockchain, a high-capacity network that allows for low-cost transactions. This move aligns with Ardoino’s perspective of blockchains serving as transport systems for the stablecoin, as it extends its reach to compatible networks that suit its intended applications.
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2024-08-26 11:41