Competition for smart contract layers is dense. Hundreds of blockchains have been funded as a byproduct of the ICO mania. While most have vanished or lost prominence, some compete for the limelight that Ethereum claims all to itself.
Solana, one of the many high TPS blockchains vowing to dethrone Ethereum, has collaborated with Terra, a stablecoin issuance protocol supported by South Korea’s most prominent e-commerce firm, TMON. This is a reasonable partnership given that the value transfer on Ethereum denominated in stablecoins exceeds that of ETH tokens even. Given that there is no prominent Korean Won stablecoin on Ethereum, Solana may have found a sweet spot.
Solana teaming up with Terra will allow stablecoins to enter into the DApps builts on Solana. The collaboration will allow developers to enjoy low transaction fees via a new stable payments bridge technology. The irony of such blockchains that tout their low-fee advantage is that it nullifies any need for the appreciation for their token as a tiny amount will suffice an incredible number of transactions. Regardless, the project’s COO, Raj Gokal, COO of Solana, touts, “by bringing stablecoins onto our network, we aim to dramatically expand the design space for developers, opening the door to novel applications that require price-stable payments.”
Finally, Some Spotlight for Terra
The stablecoin market is competitive and even market titans like Coinbase have not managed to scathe Tether’s dominance, let alone a fresh market entrant like Terra.
However, Terra has other advantages under its sleeve as it is more than just a stablecoin issuer. It is a growing payment platform that is backed by a crate of the world’s leading stablecoins. Terra’s foremost app, CHAI, has recently crossed more than 1 million monthly active consumers and the platform has marked above $3M in daily transaction volume. This means Terra can bring stablecoins to usage beyond trade volume, which would make Terra’s stablecoin more prominent among the mass market as, beside cryptocurrency traders, even Tether has little to no adoption in actual spending.
In regards to partnership with Solana, a spokesperson from Terra stated,
“working together, we believe this partnership will foster a thriving community of dApps that leverage the strengths of both Solana’s speed and Terra’s stablecoin ecosystem.”