June 21, 2023 at 16:40 GMTModified date: June 21, 2023 at 16:40 GMT
June 21, 2023 at 16:40 GMT

Kava up 15%, as Tether to host USDT on blockchain

The price of $KAVA is currently up by 15% in the last 24 hours, as it’s been announced that Tether will launch USDT on the Kava blockchain.

Kava up 15%, as Tether to host USDT on blockchain

The price of $KAVA is currently up by 15% in the last 24 hours. The native asset of layer-1 blockchain Kava surged to $0.93.

In the same period, about $88million worth of the coins has changed hands across exchanges. This figure represents a 221% increase from the trading volume recorded yesterday.

Daily KAVA chart. Source: CoinMarketCap

Tether to host USDT on Kava blockchain

Kava’s price rally is fueled by the recent announcement that Tether, the largest stablecoin issuer, will launch USDT on the Kava blockchain.

It joins the likes of Ethereum, Binance chain, Tron, Solana, Algorand, EOS etc to host the largest stablecoin.

Speaking about the news, Tether CTO Paolo Ardoino heaped praises on Kava network, recognising it as a distinctive and reputable blockchain platform with a good track record of security. 

“We’re thrilled to be launching USDT on Kava, offering its strong community access to the world’s first, most stable, most trusted, and most widely used stablecoin…The Kava network is a unique and widely followed blockchain with a robust track record of four years with zero security issues, which is essential to protecting USDT users. Together, we aim to reshape the future of decentralized finance, fostering a robust and inclusive ecosystem that benefits users worldwide,” he said

Ardoino’s focus on highlighting Kava’s stringent security during a period when USDT experienced a loss of its peg is unlikely to be mere coincidence. This new decision is widely perceived as a deliberate move by the company to regain investor confidence by demonstrating its commitment to innovation, especially in light of the recent concerns and uncertainties.

USDT depegged by 0.43% last week, leading to an unbalanced Curve3 pool. The leading stablecoin had over 70% of the reserves, while DAI and USDC made up just over 14% each. This marked the first instance since November 2022, during the collapse of FTX, that USDT’s pool reserves surpassed the 50% threshold. Ardoino remained unfazed despite the FUD and panic.

He responded via a tweet saying: “Markets are edgy in these days, so it’s easy for attackers to capitalize on this general sentiment. But at Tether we’re ready as always. Let them come. We’re ready to redeem any amount.”

Following the news, Kava becomes the 14th network to support the dollar-pegged stablecoin. The Cosmos-EVM blockchain’s commitment to expansion is evident in the recent addition of USDT, USDC and BTC to the array of assets available on its decentralised lending platform, Kava Lend.

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