The Solana price explodes after Tether’s USDT addition which is expected to attract even more builders and users to the blockchain network so let’s read more in our latest altcoin news today.
Tether the number one stablecoin by market capitalization and it became available on the Solana blockchain a day ago. After the announcement was made, the Solana price, or more specifically the price of the SOL token went from a low of $13.81 to $16.06 which marks a 16% increase as per the data by Nomics but later corrected slightly.
In addition to the ETH blockchain and now Solana, USDT tokens are easily found on the EOS, TRON, algorand, and other protocols and networks as well. Solana is a proof of stake blockchain network which markets itself as a high-speed and low-cost alternative to Ethereum. The ETH network is having a hard time containing the high transaction costs and congestion because of the popularity of the decentralized finance and NFT applications where many of which are built atop the blockchain.
NFTs are digital assets in the form of virtual trading cards whose ownership and authenticity are verified via a blockchain. Stablecoins like Tether are designed to bypass the price volatility of most cryptocurrencies with the price of USDT being pegged to the price of the US dollar. Once purchased from the exchange or minted, stablecoins are easily used to transfer funds between blockchain platforms and tokens without using a bank. This makes it easier for people to participate in Defi as for example, some networks pay interest to those that lend out their stablecoins.
DeFi is an area that Solana tries to capitalize on and this space describes blockchain-based applications that people use to lend or borrow money, speculate on prices or swap assets without having to use a bank. The network added stablecoin functionality in May 2020 and integrated Tether’s rival USDC back in October so in between, it created a bridge to ETH so that other projects on the network could migrate to.
As per Tether’s announcement, Solana users can now exchange “USDt at speeds greater than 50,000 transactions per second often for as little as t$0.00001 per transaction.”
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