2024-03-05 18:04:33
Tether allows users to move their USDT stablecoins between blockchains should one of the operated blockchains become unresponsive.
Recovery of USDT transactions
The largest stablecoin issuer, Tether, has launched a new tool to migrate Tether coins between different blockchains.
A Tether announced on March 4 launching a blockchain recovery tool that provides access to USDT even if one of the blockchain networks used for the transaction goes down.
According to Tether data, USDT can be found on 14 blockchains as of March 4th. Among them, Tron, Ethereum, Solana, Avalanche and Omni support stablecoin transfers. Tron and Ethereum are the two largest USDT blockchains, accounting for 51% and 43% of all USDT issued, respectively.
Top 5 Blockchain Networks Using Tether (USDT) as of March 4, 2024. Source: Tether
Despite Tether’s heavy reliance on blockchains like Tron and Ethereum,
USDT “exists independently of blockchains,” Tether said in a recent announcement, stressing that blockchains are used “only as a transport layer.”
Forwardable blockchain transactions
To prevent a blockchain from becoming unresponsive, unreliable, or unusable, Tether created an official recovery tool, which allows users to migrate between USDT blockchains. The company noted:
“Users can verify the ownership of their addresses on a non-responsive blockchain and the recipient’s address on another supported blockchain. And Tether transfers USDT between blockchains.”
According to the announcement, affected USDT users will be able to initiate the migration process via a web interface or using command line tools. The process includes the cryptographic signature of the migration request, which is required to prove ownership of Tether tokens. This function is already available for most wallets. So migration between blockchains will also work for MetaMask and hardware wallets such as Ledger or Trezor.
In addition, the command-line interface allows users to directly enter their private key and sign the required message using an open-source script even on their local machine, the announcement notes.
A significant milestone
During the launch of Tether’s recovery tool, USDT passed a major milestone in terms of its market value. The market capitalization of USDT recently reached 100 billion dollars for the first time in history.
Currently, according to data from CoinGecko, USDT is the third largest cryptocurrency by market capitalization, after Bitcoin and Ether. Their total value is 1.4 trillion and 442 billion dollars, respectively.
On the other hand, USDT is currently the largest cryptocurrency based on daily trading volume, as of March 5, $132 billion worth of crypto trades and transactions are done using USDT per day. BTC and ETH follow USDT in trading volume with $82 billion and $33 billion in daily transactions.
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