The current pandemic has made everything uncertain. The utility, security, and viability of digital currencies have come to the forefront and people are in the lookout for alternatives to traditional banking and payment methods.
Tether, stablecoin is a major example to how global markets will be able to operate very efficiently by leveraging the blockchain technology. Tether is a payments rail, which is actually fit to provide for the future of business and innovation.
Tether Holdings Limited was established by Hong Kong Based Company. The token has been fairly controversial. There have been warnings from professional analysts, attorneys, and traders that the stable coin does not have the financial backing of USD for as much as required.
Despite all the negative comments, the growth of Tether has been fairly good. It has a market capitalization of more than $10 billion.
Tether is good because it serves as the bridge between crypto and fiat. It can be transferred quickly and it is stable than other cryptocurrencies. The advantage for investors is that by roughly aligning the value of Tether with USD, it will be possible to control volatility and inflation closely.
Sydney Ifergan, the crypto expert tweeted: “Tether (USDT) is growing everyday as a value transfer layer protecting the value of investments in the cryptocurrency world.
Tether (USDT) and DeFi
DeFi and token swapping protocols like Uniswap contribute in a great deal to help with Tether usage. The supply of Tether has surpassed $13 billion, which means it has grown by 225% and it does not seem to show signs of slowing down anytime soon.
With increasing numbers of people looking for alternative banking methods the utility, security and viability of digital currencies are coming to the forefront.
Since, the gas fees on Ethereum has been increasing, and a majority of USDT is slowing down the network, USDT has been finding it very difficult to operate on the Ethereum Network. They have recently migrated a part of their operations to OMG network, EOS, and TRON block chains.
Vansa Chatikavanij, CEO at OMG Network, recently tweeted: “Today, we’re excited to announce the launch of Tether on the OMG Network that supports thousands of transactions per second at a third of the cost of the same transaction on Ethereum.”
OMG network also expressed that they are delighted to address the fundamental issues to drive further adoption of open financial services.
Reportedly, the average daily transfer value for Tether has crossed that of Bitcoin and Paypal. The 7-day average adjusted transfer value for Tether touched $3.55 billion until August 2020, which is 20% more than Bitcoin. The daily average transfer value of the online payment giant was less than $2.94 billion.
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