Tether Chooses Not To Launch Its Own Blockchain Amid Market Saturation.
According to Bloomberg, Tether has decided against launching its own blockchain due to the saturated market. Despite controlling USDT with a market cap of $117 billion and its wide usage for trading and remittances, Tether found no compelling reason to introduce a new blockchain. The current market dynamics illustrate why this decision was made.Data from DefiLlama reveals that out of 306 blockchains, the top five control approximately 86% of the total value of assets locked. Ethereum, the most commercially significant blockchain, leads the market with about $87.7 billion in Total Value Locked (TVL) out of the total $133.2 billion across all chains. TRON, a blockchain launched by crypto entrepreneur Justin Sun in 2017, manages $8.1 billion in TVL and handles 49% of the USDT supply. TVL refers to the overall value of crypto deposited in a protocol.For a blockchain to succeed, it needs high speeds, low fees, viable use cases, and strong security. Ethereum's dominance can be attributed to its first-mover advantage, flexibility for developers to build smart contracts, and its status as the home to the second-most liquid token, despite its high fees. The blockchain ecosystem has evolved into a multichain environment, with builders and issuers finding benefits in being active on various platforms.Tether's CTO, Paolo Ardoino, stated that the company prefers to remain blockchain-agnostic regarding where its stablecoin trades, as long as it ensures the highest level of security and sustainability. "For us, blockchains are just transport layers," Ardoino said.
