- Tether ends USDT support for Algorand and EOS.
- According to Tether, the move is part of a “strategic shift.”
- Dropping support for a popular blockchain isn’t Tether’s first decision.
Despite drawing the ire of regulators on several occasions, Tether continues to dominate the cryptocurrency stablecoin market. A key part of the success of stablecoin issuers is their availability and speed of launch on fast-growing blockchains. However, this strategy requires your company to review its supported networks from time to time. As of the most recent review, Algorand and EOS have gotten the axe.
“Strategic shift”
Tether ends USDT support for Algorand and EOS. The stablecoin issuer revealed the decision in a blog post on Monday, June 24, citing a “strategic shift to prioritize community-driven blockchain support,” which could lead to a long-term decline in network activity for Algorand and EOS. It was implied that it was.
"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.
In a recent decision, Tether announced that it will stop issuing USDT on Algorand and EOS. At the same time, the company stated that redemption of existing USDT tokens will end in the next 12 months.
According to Tether’s transparency page, at the time of this writing, there are $17 million worth of USDT in Algorand and $85 million worth of USDT in EOS. For context, approximately $113 billion worth of USDT is in circulation across 16 blockchains.
Dropping support for a popular blockchain isn’t Tether’s first decision. In August 2023, the company said it would end support for Bitcoin Cash, Kusama, and Omni Layer, citing continued declines in network usage with little sign of recovery.
On the flip side
- The data suggests that this decision is unlikely to have an impact on USDT’s market capitalization. However, this could further hinder DeFi activities on Algorand and EOS.
- rope Recently expanded On the fast-growing TON network
Why This Matters
Tether is the largest and most widely used stablecoin by market capitalization. Tether’s decision to withdraw support for Algorand and EOS highlights a significant lack of trust in the trajectories of both networks, which could have serious implications for their DeFi activities.
To learn more about Tether, read:
TRON’s Tether USDT surpasses VISA with daily trading volume of $53 billion.
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