The partnership between The Open Network (TON) and Tether has reached new heights as the USDT stablecoin experienced a massive surge in just a few months since the start of their collaboration.
A remarkable feat that saw a massive increase in the USDT on TON hitting over $1 billion in only six months, an indicator of the capability of the emerging dynamic duo.
Exponential Growth
Analysts said that TON keeps on moving upward as many investors start to adopt Tether’s stablecoin.
In a report, CryptoQuant said that in the last six months, USDT on TON rose by a whopping 670%.
CryptoQuant added that TON only had $130 million worth of USDT in May 2024, but after half a year, the stablecoin ballooned to $1.02 billion.
Analysts attributed the massive hike to the increasing investors’ preference to use TON, making the network a significant player in the stablecoin sector.
They also believed that the stablecoin market will continue to thrive and flourish rapidly which will open opportunities for emerging blockchain networks.
Currently, stablecoins have gained popularity worldwide. These digital monies are used to facilitate various activities such as cross-border transactions and personal payments.
Data showed that for instance, USDT is being utilized by 10% of all commercial transactions conducted in South Korea.
Low Transaction Fee
CryptoQuant said that the TON blockchain is an excellent substitute for stablecoins because of its low transaction costs, saying that its “competitive transaction fees” fuel the increasing number of USDT transactions on TON.
Analysts considered its remarkably low fees as one of its most significant advantages because it makes TON more attractive to users who conduct regular transactions. TON allows these users to save money while partaking in the cryptocurrency market.
Statistics showed that transaction fees have decreased significantly in the past few months. The median transaction fee in June 2024 stood at $0.061, but it went down to $0.035 by October 2024. A significant reduction greatly contributed to the TON’s rapid adoption because users are seeing the network as an option for their transactions.
USDT Expected To Expand
USDT stablecoin has emerged as a key player in the market today, reaching a USDT supply of about $120 billion.
CryptoQuant predicted that the USDT supply would expand and could reach $200 billion in the bull rally.
“This growth will likely drive further demand for fast and low-cost blockchain networks like TON, leading to continued growth in the amount of USDT on the TON network,” the analyst added.
CryptoQuant also sees that TON will have the opportunity to expand in the stablecoin ecosystem by providing “robust infrastructure and competitive advantages.”
Featured image from Medium, chart from TradingView
Credit: Source link
