Tether(USDT) announced that it is now live on the OMG Network value transfer layer. This will reduce Ethereum congestion and gas fees, and improve network transaction speeds.
OMG Network CEO Vansa Chatikavanij said,
Today, we’re excited to announce the launch of Tether on the OMG Network that supports thousands of transactions per second at a third of the cost of the same transaction on Ethereum.
The OMG Network has also promoted USDT deposits and withdrawals at Bitfinex. This will allow traders to react faster to trading opportunities and take benefits of arbitrage more effectively between exchanges as the network grows.
Each Ethereum block has only limited space available for users. For example, the total transaction throughput is approximately 12 transactions per second (TPS). Whenever the transaction demands exceed 12 TPS, the settlement period and gas costs will increase significantly.
In March, extreme congestion happened when the Ethereum price crashed from $240 to $107, liquidating over $10 billion from the market.
The said event has also led to a huge spike in demand from users to trade in response to volatile price swings which, in turn, resulted in an average network waiting time from 15 seconds to 44 minutes.
Tether is the blockchain-based platform that powers the largest stablecoin by market capitalization. Algorand, EOS, Ethereum, Liquid Network, Omni, and Tron integrate it as well.
OMG Network is an ERC-20 based platform. It uses the Plasma layer two scaling solution to achieve faster transactions than Ethereum. It has recently been rebranded from OmiseGo.