Ever since the TerraUSD (UST) crisis came to life, many investors have continued questioning the authenticity of Tether (USDT). They have proven to be quite vocal about the true nature of USDT, assuming that USDT is not backed by any physical asset at all.
However, the executives behind the launch of USDT have reassured the entire community about the authenticity of the stablecoin. As per them, USDT is fully backed by physical assets.
They have also clarified that in the past, USDT was backed by USD only. Now, there are several assets that add value to the stablecoin in the background.
USDT Keeps Expanding
While there is still uncertainty in the air, USDT has continued expanding its territory. The executives at USDT have announced that the largest stablecoin is now supported on another major network, the Polygon blockchain.
It is currently the most adopted and highest valued stablecoin with a market valuation of $72.6 billion. The average trading volume USDT observes on a daily basis is around $59.15 billion. The average global trading volume recorded for all the cryptocurrencies including that of USDT is worth $106.34 billion.
Existing Blockchains Supporting USDT
USDT is already offered through several blockchains. These blockchains include Avalanche, Kusama, Bitcoin Cash, Solana, Algorand, Liquid, EOS, Tron, Ethereum, and Omni Layer. The creators of USDT have also created CHNT and EURT, as well as XAUT (tether gold).
Reason Why USDT is integrated on Polygon
By now, everyone knows that the Ethereum network imposes high fees whenever a transaction is processed through its protocol. It had become a huge concern for the entire investment community. The team behind Tether has tried minimizing this concern by launching USDT through the Polygon blockchain.
Polygon blockchain is currently home to over 19,000 DApps and has a network supporting many cryptocurrencies. The native token of Polygon is MATIC, which currently ranks as the 21st largest cryptocurrency by market valuation.
Another major reason is to ensure that the strength of USDT keeps growing and it never ends up facing such issues. Among all the stablecoins, it is indeed USDT that is trusted the most by the entire cryptocurrency community.
Loss USDT Incurred Due to Terra Crash
The Terra network crash reportedly began on May 8 and it had intensified by May 10. Prior to the crash, USDT’s overall valuation sat at $83 billion and by May 10, it had lost $10.4 billion and had moved down to $72.6 billion.
However, with its launch on the Polygon blockchain, USDT is aiming to regain its old market valuation. The investors who were unsure about holding any stablecoin will now have a direction to move. USDT has proven that it is a highly secure and reliable stablecoin in the entire cryptocurrency market. The recent move made by the USDT team would help increase its valuation at a significant rate.