Tether, one of the main issuers of stablecoins in the world of cryptocurrencies, recently announced the end of minting USDT on the EOS and Algorand platforms.
While the news has generated discussions among users and investors, the long-term implications could lead to a more focused and efficient cryptocurrency market. Let’s see all the details below.
USDT: Tether discontinues support for EOS and Algorand to focus on other blockchains
As anticipated, the stablecoin issuer Tether has recently announced that it will no longer mint USDT on EOS and Algorand.
Starting from Monday, the main stablecoin offering will no longer be issued on the two blockchains, as indicated in a post on the company’s blog.
Despite the interruption of minting, Tether has guaranteed that it will continue to redeem USDT on both networks for the next year.
This part of the service will continue “as usual,” with the possibility of “further changes that could be evaluated and announced” in the next twelve months.
This decision reflects Tether’s stated goal of allocating “resources where they can best improve security and efficiency, while continuing to support innovation across the criptovalute landscape”.
Precisely this strategy has led the company to end support for EOS and Algorand. The minting of the stablecoin will officially end today, but the company has reassured users that “this transition will be carried out meticulously and with minimal disruptions.”
Tether emphasized that their top priority is “a seamless user experience,” which they intend to maintain during this change.
What does Tether’s decision mean for USDT users?
According to CoinMarketCap, Tether’s USDT is the leading stablecoin by market capitalization, with a value of over 112 billion dollars. Meanwhile, the second in the ranking, Circle’s USDC, has a capitalization of 32 billion dollars.
EOS and Algorand represented only 0.1% of the total supply of USDT, according to Tether Transparency data.
Both networks are just two of the 17 blockchains that facilitate USDT transactions, including important networks such as Ethereum, Solana, Tron and others.
Tether had launched USDT on Algorand and EOS respectively in 2019 and 2020. These are among the five total blockchains on which the company has ceased minting USDT since August 2023.
The decision by Tether to terminate the issuance of USDT on EOS and Algorand could represent a significant turning point in the cryptocurrency landscape, influencing both current users and the future evolution of stablecoin.
With a growing focus on more secure and efficient blockchains, Tether seems determined to consolidate its dominant position in the stablecoin market, while continuing to support technological innovation in the sector.
Despite the importance of the decision, it does not seem to have affected the prices of the cryptocurrencies EOS and Algorand at the moment. This is due to the fact that, as already mentioned, both networks represented only a small fraction of the total supply of USDT.
Furthermore, Tether will continue to redeem USDT on these blockchains for the next year, ensuring a smooth and seamless transition for users. This combination of factors has contributed to maintaining the stability of the prices of the two cryptocurrencies.