Tezos (XTZ-USD) is getting some new company, and investors are excited by the news. With stablecoins remaining one of the hottest topics of the crypto world right now, Tether (USDT-USD) is making a push to join as many networks as it can. Luckily for XTZ crypto holders, Tezos is one of those networks. The news is leading plenty of investors into the XTZ coin as a result.
The Tezos network is a layer-1, made to compete with Ethereum (ETH-USD). Launched in 2018, it is slowly growing into one of the more robust networks on the market. Today, it hosts over 70 decentralized applications (dApps), and the chain holds about $59 million in assets. Most impressive is the project’s market capitalization of nearly $2 billion. With this massive cap, XTZ is one of the largest cryptocurrencies on the market today.
In recent months, Tezos has picked up broader interest as a non-fungible token (NFT) play. With plans to increase the throughput on the network using roll-ups and data sharding, Tezos bulls think the network stands to challenge Ethereum’s dominance in the digital art industry. However, this week, all eyes are focusing on Tezos’ decentralized finance (DeFi) capabilities. With one of the largest stablecoin operations around landing on the chain, there’s reason to believe Tezos will boom as a decentralized exchange (DEX) swapping and liquidity farming play.
Tether Joins Tezos’ Chain, XTZ Crypto Volume Spikes
Tezos’ XTZ crypto is enjoying an influx of investors today. And XTZ is seeing a 20% increase in trading volume and this is helping the coin to reach its highest prices in a month. The trading boom is prompted largely by the network’s newest stablecoin launch, bringing a reputable project into the fold.
Tether is the largest stablecoin project in the world, as well as the third-largest crypto in general. The protocol holds a market cap of over $72 billion. For many, USDT is the stablecoin of choice for any sort of DeFi activity; it’s the most common stablecoin to trade with across exchanges, and a go-to token for liquidity farming as a result.
And today, USDT gets even more usability as developers deploy the token onto the Tezos chain. Now, developers will be able to accommodate one of the largest cryptos in the world on their Tezos dApps, a previously unavailable option. While Tether is certain to benefit, Tezos is likely the bigger winner here; unlocking a stablecoin of such magnitude will surely bring plenty more value to the chain’s growing ecosystem.
The news is just one step of a bigger push by Tether to reach far corners of the market. Tezos is just one stop; the stablecoin project is joining a total of 12 new blockchains in the near future. Among these other chains are fellow layer-1s like Ethereum, Solana (SOL-USD) and Avalanche (AVAX-USD).
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.