Tether, the creator of the USDT stablecoin, has announced the withdrawal of its support for the EOS and Algorand blockchains. The decision, communicated through an official statement and social media, means that as of today it stops minting USDT on both blockchains.
Tether’s move to withdraw its support for EOS and Algorand has elicited a mixture of astonishment and dismay. These two blockchains, renowned for their high transaction speeds and low fees, have been the fundamental platforms for the spread of USDT, enabling agile and inexpensive transactions.
Tether will stop minting USDT on EOS and Algorand as of today
According to the statement, the decision is due to a “strategic transition” by Tether to focus on blockchains that have higher demand and usage.
“Community interest plays a key role as we bring USDT to specific blockchains. We carefully evaluate the security architecture of the network to ensure the security, usability and sustainability of the chosen blockchain. Our goal is to allocate resources where they can best improve security and efficiency while still supporting innovation across the cryptocurrency landscape,” Tether’s statement said.
Market reactions have been swift. EOS and Algorand prices recorded a small drop after the announcement, demonstrating investors’ uncertainty about the long-term impact of this decision.
However, some analysts argue that this could be an opportunity for both blockchains to diversify their ecosystem and decrease their dependence on USDT.
Tether also unveiled in its statement that it will stop minting USDT on EOS and Algorand as of today. Instead, the company will continue to facilitate USDT swaps on EOS and Algorand over the next 12 months and stresses that “further changes may be evaluated and announced at that time.”
At the time of publication, net USDT circulation on EOS and Algorand exceeds 92.6 million tokens, according to Tether.
Move toward innovation: USDT on TON comes to Travala.com
This move by the company highlights a broader trend in the cryptocurrency market: the permanent adaptation and readjustment of stablecoin issuers to stay competitive and relevant.
For example, Tether today revealed that USDT on the TON blockchain is now available as a form of payment at the travel agency Travala.com.
The stablecoin USDT remains the largest in the cryptocurrency market, with a capitalization of $112.94 billion. This decision to prioritize its resources and focus its support on the most popular blockchains could further strengthen its market presence.
