USDT's multi-chain expansion strategy: horizontal USDT0 and vertical Legacy Mesh

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The Continuous Rise of USDT and Cross-Chain Expansion Strategy

As a leading stablecoin, USDT's market capitalization has risen from 80 billion USD to 144 billion USD over the past year, an increase of 80%. Nevertheless, its market share has dropped from 70% to 61%, indicating that other stablecoins are also developing rapidly. To maintain its growth momentum, USDT has adopted an aggressive cross-chain expansion strategy.

USDT0: A New Node in the Expansion of the Tether Stablecoin Empire

Challenges of Expansion Faced by USDT

Limited native support

USDT currently natively supports about 12 blockchains, but it actually exists on more than 80 chains. On non-natively supported chains, USDT is realized through third-party bridging, which adds additional risks.

USDT0: A New Node in the Expansion of the Tether Stablecoin Empire

cross-chain USDT's rise

Approximately $8 billion of USDT has been bridged to other chains on Ethereum. This fragmentation makes it difficult for Tether to comprehensively regulate and manage risks.

USDT0: A New Node in the Expansion of the Tether Stablecoin Empire

the value loss to Tron

USDT dominates on Tron, generating significant transaction fee revenue. This has prompted Tether to consider launching its own blockchain to capture more value.

USDT0: A New Node in the Expansion of the Tether Stablecoin Empire

Tether's Expansion Strategy

horizontal scaling:USDT0

Tether has launched a multi-chain version of USDT0 based on LayerZero OFT, enabling more convenient cross-chain transfers. This simplifies supply management across different networks.

USDT0: A New Node in the Expansion of the Tether Stablecoin Empire

Vertical Scaling: Legacy Mesh and Plasma

Legacy Mesh serves as a central network connecting existing USDT deployments with USDT0. Plasma focuses on the payment efficiency of Bitcoin sidechains. Together, these two projects build a comprehensive liquidity and ecosystem hub for USDT.

USDT0: A New Node in the Expansion of the Tether Stablecoin Empire

The Importance of Interoperability

With the expansion of the blockchain ecosystem, stablecoin issuers need effective cross-chain strategies. LayerZero, with its customizable infrastructure and extensive chain support, is becoming an important gateway for stablecoin cross-chain expansion. Interoperability strategies have become a key step in the development of stablecoins.

USDT0: A New Node in the Expansion of the Tether Stablecoin Empire

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GateUser-aa7df71evip
· 08-07 06:50
The market share has fallen so much? T-bao still isn't hurrying up to get to work.
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liquidation_watchervip
· 08-04 22:16
Tsk, 8 billion bridge catch a falling knife will eventually have an accident.
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GateUser-3824aa38vip
· 08-04 22:09
USDT is so intense, getting carried away a bit.
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