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The company has further announced a collaboration with the TON Foundation to solidify Tether’s dominance in the stablecoin market. This collaboration enables the issuance of Tether (USDT) on The Open Network (TON) blockchain.
Tether CEO Paolo Ardoino said this partnership has already seen a “great start,” with $60 Million worth of USDT issued on TON at 11:30 pm UTC on April 21, 2024.
Tether’s Expansion Into TON
The agreement between Tether and the TON Foundation was announced on April 19 at the Token2049 cryptocurrency conference in Dubai. In addition to USDT, the stablecoin issuer launched the gold-pegged Tether Gold (XAUT) stablecoin on TON.
The Open Network team emphasized the benefits of this integration. They stated that cross-border payments on TON would be instant, accessible, and as easy as sending a text message to Telegram’s 900 million users.
USDT Integration With Telegram
One key advantage of issuing USDT on TON is the seamless integration with Telegram’s messaging platform.
According to the TON Foundation, Telegram users can now freely and instantly send transfers between all platform users without needing a blockchain address or downloading a new app. All users need to do is send a direct message (DM).
The integration will include fully integrated on-ramps from various global fiat currencies at launch.
Moreover, integrated global off-ramps will soon allow users to withdraw supported fiat currencies directly to their designated bank accounts or debit/credit cards, streamlining the process for added convenience and accessibility.
Tether’s Dominant Market Position
With $57.8 Billion issued, most of Tether’s $109.8 Billion circulating supply is still on the Tron (TRX) network despite this new integration. Ethereum is next, with $51 Billion USDT in circulation; however, as Tether distributes its stablecoin over multiple blockchains to mitigate high network costs on Ethereum, this amount has been decreasing.
Solana is the third largest network supporting Tether, with $1.9 Billion issued, while the stablecoin has also been issued on Avalanche, Omni, Cosmos, Tezos, Near, EOS, and Celo, among others.
Tether’s Market Dominance In Stablecoins
According to CoinGecko data, Tether’s market share in the stablecoin market capitalization is impressive: 69%, accounting for around $159.5 Billion. Its closest rival, Circle’s USD Coin (USDC), holds a 21% share, with $33.7 Billion in circulation.
Market Reaction & Future Outlook
The integration of Tether with TON initially boosted Toncoin’s price by 22%.
However, prices soon reverted to previous levels, down 1.6% at $6.13 when writing, indicating that the initial excitement may have been short-lived or that market forces influenced the price correction.
Tether’s expansion across multiple blockchains is anticipated to reinforce its dominance in the market. Users now have more alternatives for easy and affordable cross-platform and cross-environment transactions.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
