Tether has announced it will end the ability to redeem USDT on five old blockchains starting September 1. The affected platforms include Omni Layer, Bitcoin Cash SLP, Kusama, EOS (now Vaulta), and Algorand.
“The decision to stop supporting old chains allows us to focus on higher scalability platforms, more active development operations, and a more vibrant user community,” Tether CEO Paolo Ardoino stated in the announcement.
This decision is not sudden. In August 2023, Tether stopped issuing USDT on Omni Layer, Kusama, and Bitcoin Cash SLP. By June 2024, the company will continue to halt issuance on EOS and Algorand.
Currently, USDT is the largest stablecoin in the market with a market cap of $139.4 billion. Among the blockchains that are ceasing support, Omni Layer still records the highest circulating amount with $82.9 million USDT. The remaining networks have significantly lower usage: Bitcoin Cash SLP with $986,500, Kusama $240,000, EOS $4.2 million, and Algorand $841,600.
Algorand users will not experience disruption
According to data from DefiLlama, USDT is the third most popular stablecoin on the Algorand network, while its main competitor, USDC from Circle, dominates with a market cap nearly $73 million higher.
A representative from the Algorand Foundation shared: “Our users will not face any disruptions as Tether announced the stop of USDT support on Algorand since last year, giving users a year to complete their redemptions. During this time, the volume of stablecoins on Algorand continues to grow.”
According to data from Token Terminal, Algorand's revenue over the past 30 days reached $42,300, primarily from transaction fees – a common revenue source for blockchains.
Tether stated that the reason for ending support on Omni Layer is due to the lack of USDT usage activity on this network.