Tether Domination Grows: Algorand Blockchain Adds USDT
Tether is finally live on the Algorand 2.0 blockchain, becoming the first stablecoin to join the project.
Algorand Added USDT Tokens After Months of Waiting
Algorand (ALGO), the totally permissionless proof-of-stake blockchain, is one of the few selected to carry Tether (USDT) stablecoins. This opens the door for USDT to further grow its supply, while diversifying its presence over a number of networks.
USDT, which has grown its total supply to as much as 4.7 billion tokens, is utilizing networks with the capability of creating secondary assets. Currently, the most numerous USDT supply is supported by the Ethereum network, while previously, most USDT was built on top of the Bitcoin network.
Algorand is the newest blockchain, which was selected by Tether in the summer of 2019. After months of waiting, finally the tokens went live on Algorand 2.0.
“A key strength of Tether is that it is underpinned by a rich diversity of different blockchains,” said Paolo Ardoino, CTO at Tether. He continued,
Our latest collaboration with Algorand leverages the speed and security of Algorand’s protocol to give traders fast settlement and reduced counterparty risk in their fiat to digital asset transactions
Algorand USDT: Numbers Show Vast Supply of Tokens Created
There is, however, a strange detail about the tokens. While the exact number is not given, the Algorand block explorer reveals a page where the minting of more than 18 trillion tokens has been recorded. This may be a glitch or an error, as the teams have not yet explained the address containing 18,446,744,073,709.55 USDT.
Currently, USDT also contains nearly a billion coins on the TRON mainnet. Another 899 million exist on the EOS network. Thus, Tether has taken over a very varied selection of blockchains, from proof-of-work networks like Bitcoin and Ethereum, to delegated proof-of-stake through TRON and EOS.
Algorand is unique for being a decentralized, permissionless proof-of-stake, meaning Algorand-based USDT are secured by multiple voluntary participants across the world. Adding USDT to the network may also boost the transaction levels for the Algorand network. USDT remains highly active, with daily trading volumes above $46 billion in the past day. During the last hike of BTC to above $10,000, USDT coins traded 10 times per day, marking the highest possible turnover for all stablecoins.
USDT, for now, is the only stablecoin to exist in parallel over several blockchains. This makes it a bit harder to track the stablecoin flows. For USDT, increased minting is often translated into dramatic market moves. But for now, it remains uncertain how Algorand-based USDT will work within the ecosystem. Algorand adoption is still relatively small, with around 5,000 transactions per day.
What do you think about the addition of USDT to the Algorand network? Share your thoughts in the comments section below!
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