Tether has announced the launch of USDT stablecoin on the OMG Network, a tier 2 scaling solution for the Ethereum blockchain.
As reported by Tether, thanks to the OMG Network, USDT holders will pay fewer fees, and the time to confirm token transactions will be reduced without compromising security. Tether CTO Paolo Ardoino said that making USDT transactions on the OMG Network will reduce costs, improve network performance and reduce the load on the underlying blockchain.
This will positively impact Tether customers, the entire Ethereum ecosystem, and the Bitfinex cryptocurrency exchange. The OMG Network will make it easier to deposit and withdraw USDT to this platform, so traders will be able to react faster to market changes and arbitrage between exchanges more efficiently.
Currently, the total throughput of the Ethereum blockchain is about 12 transactions per second. If the number of transactions increases, along with this, the time of their execution and the cost of gas, that is, the transaction fees, increase. Ethereum’s transaction fees hit new highs last month, according to Etherscan. On July 18, the network used 74.033 billion gas, and on July 22, the network again approached the mark from 74.015 billion gas. In addition, USDT transaction fees on the Ethereum network totaled $ 2.56 million in June.
OMG Network CEO Vansa Chatikavanij added that the network supports thousands of transactions per second, and the cost of transaction fees is two-thirds lower compared to similar transactions on the Ethereum network. OMG Network is trying to address the major challenges facing Ethereum and furthering the development and adoption of open source financial services.
According to Messari, in 2020 the capitalization of the USDT stablecoin doubled and exceeded $ 10 billion.In addition, recently, Tether issued USDT stablecoins totaling $ 540 million on the Tron and Ethereum blockchains, explaining this by the need to replenish the USDT reserves.
