Tether, the issuer of the biggest stablecoin, on Monday announced that it will cease issuing new USDT tokens on the EOS and Algorand blockchains. The major decision is part of Tether’s ongoing efforts to develop its operations while it is looking to focus on more widely adopted networks.
Tether takes big step
As per the announcement, Tether will continue to support redemptions of USDT on EOS and Algorand for the next 12 months. The company has signaled more changes that may be evaluated and announced around the end of this period.
It highlighted the need to balance maintainability, usage, and community interest in their decisions. The note stated, “We carefully evaluate the network’s security architecture to ensure the safety, usability, and sustainability of the chosen blockchain”.
Tether aims to allocate resources where they can best enhance security and efficiency while promoting innovation within the crypto ecosystem.
USDT is the biggest stablecoin in the market. It holds a market cap of more than $112 billion. Its 24 hour trading volume jumped by 135% to stand at $55.8 billion. However, the cumulative stablecoin market cap stood at around $163 billion.
EOS based USDT currently accounts for $75.5 million, or about 0.06% of the nearly $113 billion in total circulating USDT. Algorand-based USDT represents approximately $17 million, or 0.01% of the total supply. These figures highlight the relatively small role these blockchains play in the broader Tether ecosystem.
What’s next?
This move is part of a broader strategy by Tether to streamline its operations. In August 2023, Tether discontinued USDT minting on the Kusama, Bitcoin Cash SLP (Simple Ledger Protocol), and Omni Layer Protocol blockchains. The company continues to focus on networks with higher usage and better security.
Despite discontinuing support for some blockchains, Tether remains committed to integrating new networks. In April 2024, Tether launched USDT on The Open Network (TON), rapidly issuing around $500 million worth of stablecoins on this platform, which now accounts for about 0.44% of the total circulating USDT supply.
Tether was first issued on the Bitcoin blockchain through the Omni Layer Protocol in 2014 and has since expanded to 17 blockchains, including Ethereum, Tron, and Solana. By continually reassessing its blockchain partnerships, Tether aims to support a sustainable and innovative digital asset ecosystem.
