Friday, March 29, 2024
HomeAltcoinsTether announces launch of USDT stablecoin on Polygon to increasing trade volumes...

Tether announces launch of USDT stablecoin on Polygon to increasing trade volumes and liquidity

On May 27, Tether, the firm behind the most valuable stablecoin by market cap, made an official announcement on Twitter that it is now providing its USDT stablecoin on Polygon. Tether was first issued through the Bitcoin protocol’s Omni Layer, but it has subsequently moved to other networks like Ethereum and TRON, leading to increasing trade volumes and liquidity.

Tether is the world’s third biggest cryptocurrency, after only Bitcoin and Ethereum, with a market capitalization of around $76.8 billion at the time of writing. Tether previously announced the creation of a new token connected to the Mexican peso (MXNT). The token is meant to boost the company’s visibility and effect across Latin America.

Most stablecoins are backed by currency reserves in order to offer enough collateral if users want to withdraw their funds. On the other hand, TerraUSD, or UST, is part of a new generation of “algorithmic” stablecoins that attempt to base their dollar peg on code. Following the Terra UST collapse, investors’ faith in stablecoins was put to the test.

TerraUSD, an algorithmic stablecoin, and its sister token, LUNA, have been the primary drivers of the bear market, with TerraUSD dropping to almost zero dollars in a matter of days and wiping out over $60 billion in Terra alone.

Investors withdrew over $7 billion from Tether when it momentarily dropped off its dollar peg, as previously reported by U.Today. Tether has announced $82.4 billion in consolidated total assets in response to concerns raised about the reserves underlying the world’s biggest stablecoin.

Related Posts:
Jeewan Singh
Jeewan Singh
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

nine − seven =

- Advertisment -

Most Popular