- Tether is ending USDT support on Algorand and EOS.
- According to Tether, the move is part of a “strategic transition.”
- It would not be Tether’s first decision to drop support for popular blockchains.
Despite severally drawing the ire of regulators, Tether continues to dominate the crypto stablecoin market. A key part of the stablecoin issuer’s success is its availability and speed of launch on fast-rising blockchains. This strategy, however, requires the firm to review its supported networks now and then. Following its most recent review, Algorand and EOS have gotten the ax.
“Strategic Transition”
Tether is ending USDT support on Algorand and EOS. The stablecoin issuer disclosed this decision in a blog post on Monday, June 24, citing a “strategic transition to prioritize community-driven blockchain support,” hinting at an extended drop in network activity on Algorand and EOS.
"Our goal is to allocate resources where they can best enhance security and efficiency while continuing to support innovation across the crypto landscape," the firm wrote in its statement, further explaining the decision.
Per the recent decision, Tether disclosed that it had stopped the minting of USDT on Algorand and EOS. At the same time, the firm disclosed that redemption of existing USDT tokens would end after the next 12 months.
According to Tether’s transparency page, at the time of writing, there is $17 million worth of USDT on Algorand and $85 million worth of USDT on EOS. For context, about $113 billion worth of USDT is in circulation across 16 blockchains.
It would not be Tether’s first decision to drop support for popular blockchains. In August 2023, the firm disclosed that it was ending support for Bitcoin Cash, Kusama, and Omni Layer, citing an extended decline in network usage with little sign of recovery.
On the Flipside
- The data suggests the decision is unlikely to dent USDT’s market cap. However, it could further hamper DeFi activity on Algorand and EOS.
- Tether recently expanded to the fast-rising TON network.
Why This Matters
Tether is the largest and most widely used stablecoin by market cap. Tether’s decision to withdraw support for Algorand and EOS highlights a significant lack of confidence in the trajectory of both networks, which could significantly impact their DeFi activity.
Read this for more on Tether:
Tether’s USDT on TRON Hits $53B Daily Volume, Surpasses VISA
See how you can stay safe from rising phishing attacks in the TON ecosystem:
TON Ecosystem Phishing Attacks on the Rise: How To Stay Safe
Sourced from dailycoin.com.
Written by on 2024-06-24 21:00:00.
