Tether has announced plans to discontinue USDT support on Algorand and EOS blockchains. The stablecoin issuer disclosed that minting will stop immediately, but the stablecoin will remain redeemable on the network for the next 12 months.
Also read: Tether surpasses Visa in daily transaction volume on Tron
This move marks the second time Tether will discontinue USDT minting on a blockchain network in less than a year. However, it still supports stablecoin issuance on over ten networks, including Solana, Tezos, Ethereum, and Tron. Most of the USDT circulating supply is on Tron and Ethereum, which account for about 101 billion USDT of the tokens issued.
Exiting the networks is a strategic decision
Tether described its decision to stop minting on the two networks as a “strategic transition” to focus on blockchains with significant interest in its USDT stablecoin. The firm said it would evaluate the existing networks it supports based on their “usage, maintainability, and community interest.”
“We carefully evaluate the network’s security architecture to ensure the safety, usability, and sustainability of the chosen blockchain. Our goal is to allocate resources where they can best enhance security and efficiency while continuing to support innovation across the crypto landscape.”
Meanwhile, the company assured its users that the transition would be smooth and have as little disruption as possible. It also promised to continue supporting protocols and blockchain networks with wide USDT adoption and use cases.
Tether’s USDT remains the most dominant stablecoin
Tether’s decision is unlikely to affect USDT supply and dominance among stablecoins. Its circulating supply on the two networks accounts for less than 0.1% of the market cap. Defillama data shows that the USDT supply on Algorand is $17.22 million, while EOS has a higher supply at $75.44 million.
Also Read: Tether prints 1B tokens in a month, USDT faces EU regulation demands
Despite abandoning several blockchain networks during the past year, USDT has continued to perform strongly, evidenced by its current market capitalization of $112.84 billion and dominance at 69.59%. Moreover, the company has also expanded its business into other ventures, including Bitcoin mining and investments in artificial intelligence-related companies.
Tether Tokens in Circulation (Source: Tether)
However, despite its dominance, Tether faces intense scrutiny over its assets. Last month, analysts at Deutsche Bank warned that stablecoin, including USDT, could witness a “peso moment” that would devastate the crypto industry. Additionally, there are suggestions that the US government was targeting the stablecoin due to undisclosed reasons.
