The issuer of the world’s leading stablecoin, Tether, has decided to abandon its plans to launch its own Blockchain. This decision stems from a straightforward economic principle: supply and demand. Tether CEO Paolo Ardoino explained that, with the market becoming increasingly saturated, introducing another Blockchain would not be a prudent move.
Blockchain Inflation: A Growing Concern?
In the highly competitive crypto market, new Blockchains emerge almost daily. Despite its solid technical capabilities and a market value of $117 billion, Tether has chosen not to participate in this trend. Ardoino emphasized that while Tether excels in technology, the proliferation of Blockchains renders them nearly commoditized, making the launch of a new Blockchain less logical.
Market Dynamics Support Tether’s Decision
Data from DeFiLlama reveals that a staggering 86% of the total locked asset value, amounting to $133.2 billion across 306 Blockchains, is concentrated in the top five Blockchains. Ethereum leads with $87.7 billion in locked assets, while TRON handles 49% of Tether’s supply with $8.1 billion locked. These figures underscore the rationale behind Tether’s decision to forgo launching its own Blockchain.
Concrete Implications for Tether’s Stance
- Tether focuses on leveraging existing, highly secure Blockchains rather than introducing a new one.
- This strategy allows Tether to maintain efficiency without diluting market value.
- By remaining neutral, Tether can adapt to the best available Blockchain technologies.
Ultimately, Tether’s choice highlights a different approach in the crypto landscape, where owning a Blockchain is not always beneficial. Instead, Tether prioritizes security and sustainability over market saturation. Ardoino concludes that Tether views Blockchains as mere transport layers, reinforcing their unique stance in the industry.
