As per the announcement of the Ethereum layer-two network, Hermez, the currently surging Tether stablecoin is set to be the very first token to officially be offered within the said network as part of the two’s newly-formed partnership. As a result of the collaboration, Hermez may soon offer cheaper USDT transaction batches by way of the zK-Rollups as the network launches this Q1 of 2021 officially.
David Schwartz, the network’s project head, commented on this development by stating that the network is operated by several permissionless coordinators who are responsible for the transactions to be included within each batch depending on the fees associated with it.
Another representative of Hermez then added that following the boostrapping passing period, fees are expected to be predictable due to a particular batch having the same fleeting resource as the one we have today. On top of that, coordinators would have to be incentivized enough for them to include your transaction in the batch. Now, however, batches can go as high as 2,000 tx each – a significant improvement from before.
Lastly, Hermez notes that coordinators mush have the network’s HEZ token on hold before they could readily participate in the transactions’ processing while also stating that 40% of the generated value will go to Gitcoin grants.
Tether continues its rise, notably recording over 2 billion USDT in a single week
According to the latest Coin Metrics report, more than 24.6 billion Tether stablecoins are now circulating across several networks and platforms following its record-breaking minting of over 2 billion USDT last week. This is a staggering improvement from the previous year wherein there are ‘only’ 4.8 billion USDT.
Alameda Research quantitative trader, Sam Trabucco, states that the stablecoin’s astounding growth can be attributed to several factors. That being said, he adds that some people have now lost their trust in conventional banks and currencies; thus, have looked for other alternatives. Thankfully, USDT is the most USD-like within the market today, as per Trabucco.