Tether To Move $1 Billion Of Its Stablecoin USDT From Solana To Ethereum
Tether has launched a chain swap that will allow it to move $1 billion in USDT from the Solana network to the ETH network. This action taken is in accordance with the current market performance of the Solana token, which has been severely impacted by the crash earlier this year, and the recent FTX crash.
The Blockchain Swap
A chain swap is a transfer of digital assets from one blockchain to another for a variety of reasons. This occurs when demand for crypto tokens increases from one blockchain to the next; With increased demand, the tokens are moved to the other blockchain.
The demand for the USDT on the ETH marketplace has surpassed the demand for it on the Solana marketplace. The Tether team is planning to move a billion worth of its stablecoin from the Solana blockchain to the Ethereum blockchain.
This has previously occurred with Tron, where the Tether firm moved some of its stablecoins from the Tron network to the Ethereum network.
Solana, which was frequently paired as an Ethereum rival, has not fared well in the market.
Following the market crash earlier this year and the recent FTX crash, the Solana token has seen new lows. SOL which reached an all-time high of $259 in October last year, has now dropped to the $12 mark.
This new development from Tether follows the market crisis, during which the Solana token performed disastrously in terms of trading volume and overall market cap.
Solana, being one of the top five most traded cryptocurrencies according to Coinmarketcap, now struggles to retain that spot against all market tides.
Solana’s Ties With FTX
The Solana token has dropped by more than 95% since its all-time high in October 2021. It also fell to 16th place in terms of market capitalization last week.
This Solana downtrend appears to be as a result of FTX’s involvement in Solana’s development. FTX was a key player in the development of Solana’s Decentralized Applications and Liquidity Providers.
Following the crash and the shutdown of all activities, the liquidity provider eventually ceased to function because it was also linked to the FTX exchange, as the secret keys used to operate this Platform were stored in FTX.
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