Tether launches stablecoin on DeFi protocol AVAX, USDT total supply reaches $78 billion

Tether has launched its stablecoin, USDT, on the Avalanche blockchain as the altcoin network’s ecosystem continues to grow. Since stablecoins play an essential role in the decentralized finance (DeFi) market, USDT launching on Avalanche could further boost the protocol’s growth.

Tether expands on multiple networks

The company behind the largest stablecoin by market capitalization announced that USDT is going live on Avalanche. According to the stablecoin firm, the launch of Tether tokens on the DeFi platform could boost stablecoin usage across the decentralized finance ecosystem.

Users of the cryptocurrency exchange Bitfinex would be able to purchase and sell USDT quickly and at lower fees on the Avalanche network than they currently pay.

Tether’s CTO, Paolo Ardoino, stated that the integration on Avalanche “represents an evolved project that boasts Ethereum Virtual Machine compatibility” and could be a significant driver for developers looking to “port decentralized applications over from Ethereum.”

The Avalanche protocol is designed to be a highly scalable ecosystem that cold deliver near-instant transaction finality while also enabling low transaction fees. Ardoino further noted that Avalanche’s community is growing and flourishing as the protocol has gained traction within the wider digital token ecosystem.

Tether also recently launched on the Polkadot, Kusama and Solana blockchains, among other platforms. 

Notably, Avalanche’s user activity has significantly surged this year, with over 670,000 unique addresses. USDT has also seen steady growth this year, as the cryptocurrency markets rallied. Currently, the stablecoin’s total supply has reached around $78 billion from $22 billion at the start of the year.

AVAX price eyes $130 next

AVAX price has recorded a new all-time high at nearly $97 at the start of the week, as bullish momentum continues to rise in tandem with the network’s adoption.

The DeFi token has already reached its optimistic target given by the symmetrical triangle pattern and could be gearing up for a climb toward $131.51, according to the bull pennant pattern on the daily chart. 

AVAX/USDT daily chart

However, AVAX price could retrace to retest crucial support levels before Avalanche takes off, with the nearest support at the November 5 high at $80.78. The following line of defense for the token is at the 78.6% Fibonacci retracement level at $78.16, then at the 21-day Simple Moving Average (SMA) at $72.88.