Tether Moves USDT Worth $1 Billion From Solana To Ethereum

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Stablecoin issuer Tether announcedwithdrawal of USDT worth $1 billion from the Solana blockchain to Ethereum. The reason was that Solana faced difficulties after the collapse of the FTX cryptocurrency exchange.

According to Tether, the exchange will take place with the help of a third party.

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In a few minutes Tether will coordinate with a 3rd party to perform a chain swap, converting from Solana to Ethereum ERC20, for 1B USDt. The #tether total supply will not change during this process.
Learn more about chain swaps https://t.co/abfgnELSvi

— Tether (@Tether_to) November 18, 2022

Just a few weeks ago, Solana was one of the top five cryptocurrency projects by market capitalization. About $1.8 billion worth of USDT was stored on this blockchain.

According to DeFiLlama, after Tether's announcement, the price of SOL fell by about 0.03%, and the total value of assets locked in DeFi protocols decreased by 10.95% to $297.73 million.

Now Solana ranks 15th in terms of marketcapitalization - over the past seven days the indicator has decreased by almost 25.4%. SOL is trading at $12.87, which is many times lower than the all-time high of $256.

Yesterday it became known that the world's largest digital asset exchange Binance announced a temporary suspension of support for deposits in USDT and USD Coin (USDC) stablecoins on the Solana blockchain.

Former Goldman Sachs executive andcrypto enthusiast Raoul Pal believes that despite a possible short-term decline in the price of SOL, this asset remains attractive in the long term.