Tether (USDT) Migration to Polygon Blockchain: What Next?
With the Migration of Tether to the Polygon blockchain, USDT is now present in a total of 11 blockchains. Some other blockchains where Tether (USDT) exist are Bitcoin blockchain, Ethereum blockchain, Solana blockchain, Avalanche blockchain, Binance blockchain, Tron blockchain, Algorand blockchain, Kusama blockchain, Liquid, and Bitcoin Cash blockchain.
At the time of writing, Stablecoin Tether (USDT) is ranked in the third position and trading at $0.9994 with 0.04% increase in the past 24 hours. Polygon (MATIC) is in the 17th position and is trading at $0.6267 with a 24 hours increase of 5.10%.
Some of the possible outcomes for the migration of Tether (USDT) to the Polygon blockchain include:
Increased trust in Tether (USDT) Stablecoin
The recent market implosion of Terra blockchain native Stablecoin TerraUSD (UST), led to questions on the safety in hodling stablecoins?
However, the successful migration of Tether (USDT) which is pegged in a 1:1 ratio to the Polygon blockchain, has increased the trust of investors and cryptocurrency traders that the token is safe.
Increased ranking for Tether (USDT) and Polygon (MATIC)
Tether (USDT) has maintained the third position in the CoinMarketCap ranking of cryptocurrencies for some months now. This is after it displaced the likes of the Binance Coin(BNB), Ripple's native token (XRP), that has occupied the position previously.
Ethereum (ETH) is presently occupying the second position in CoinMarketCap ranking with a market capitalization of about $229 billion. Tether (USDT) has a market capitalization of about $72.29 billion at the time of writing. This makes the market capitalization of Ethereum to be 216% of that of USDT. The 24-hour trading volume of ETH and USDT at the time of writing is $15.61 billion and $53.60 billion respectively. This means that USDT trading volume is over 250% that of Ethereum.
With this migration to the Polygon blockchain, more Tether (USDT) could be minted in order to meet the demand that will be generated from users on the Polygon blockchain.
Also, with the low transaction fees on the Polygon blockchain, the demand for Polygon native token (MATIC) could rise. This will also increase its price due to a rise in demand, which will directly increase its position in the CoinMarketCap ranking of cryptocurrencies according to their market capitalization.
The attraction of more projects in Polygon blockchain
Polygon blockchain is one of the blockchains just like Binance that wants to give support to Terra projects that wish to migrate to it. The multimillion-dollar fund called Terra Developers Fund will enable Terra projects to migrate to Ethereum sidechain layer 2 blockchain, Polygon blockchain.
Some developers might have doubts about why they should accept the offer to build on the Polygon blockchain. The migration of Tether (USDT) to the layer 2 blockchain, has added reasons why migration to Polygon blockchain is a good choice.
More developments and upgrades on the Polygon blockchain
At the time of writing, there are over 19650 cryptocurrencies that are listed on CoinMarketCap. New coins and tokens are added every day. This shows that there is a high level of competition in the market. Tron blockchain completes a high volume of daily transactions on Tether (USDT) TRC20. This is due to the minimal transaction fees of $1 that are changed by most exchanges on Tether withdrawal.
Since the present charge on the Polygon blockchain is $1, the Polygon team had to envisage other upgrades and developments in its blockchain, to make it the best option for users who wish to store or trade Tether (USDT).
Launch of decentralized finance projects on the Polygon blockchain
Tether (USDT) is one of the least volatile stablecoins in the market presently. USDT is used in staking in various platforms for long term investors that wish to reduce the risk that is associated with the high volatility of the cryptocurrency market.
The listing of Tether (USDT) on the Polygon blockchain, would give rise to the launch of more decentralized finance (DeFi) projects by developers on the Polygon blockchain. This could lead to a scarcity of USDT which will directly increase its value. In the past 24 hours, the price of USDT has increased by 0.04%.
Increased investment in the Polygon blockchain and Tether networks
News is one of the factors that could improve or reduce the public sentiments on a project or cryptocurrency. The news of this migration has a possibility of attracting more investors to the Polygon blockchain and the Tether network.
Conclusion
We should expect the price of Polygon (MATIC) to regain most parts of its recent loss soon. This is a result of its increased trading volume. The trading volume of Polygon MATIC has increased by over 34% in the past 24 hours at the time of writing.