Solana Price Jumps by Over 33% in Hour After Tether Addition

USDt, the stablecoin otherwise known as Tether, will soon be integrated on the Solana blockchain network, according to announcements from Tether and the Solana Foundation.

Solana, a proof-of-stake blockchain for building decentralized applications, says integrating Tether on its network will allow USDt holders to transact on the network faster and cheaper. If the cryptocurrency market is any indication, many agree that the addition adds value to Solana.

According to data from CoinMarketCap, Solana went from a market cap of just under $93 million to over $125 in less than an hour in today’s trading. During that same timeframe, the price spiked from $2.70 to $3.67 before settling in the $3.40 range. 

Still, that price movement wasn’t enough to get Solana back to its all-time highs from August 31, when the price went above $4.80 and the market cap was north of $157 million.

According to today’s announcements, Tether holders will be able “to exchange tethers at speeds greater than 50,000 transactions per second—often for less than $0.00001 per transaction.” 

That, it believes, will spur the DeFi space.

“Speed and costs are two of the largest barriers holding back DeFi today,” wrote the Solana Foundation. “This new initiative will open up entirely new design space and use cases for stablecoins within the DeFi ecosystem.”