Tether halts USDT minting on Algorand and EOS

By:
on Jun 24, 2024
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  • Tether stops minting USDT on Algorand and EOS to prioritise high-usage blockchains.
  • Redemption of USDT on Algorand and EOS will continue for the next 12 months.
  • Majority of USDT is concentrated on Tron ($59 billion) and Ethereum ($52 billion).

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Tether, the issuer of the world’s largest stablecoin, has announced it will stop minting its dollar-linked USDT token on the Algorand and EOS blockchains.

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This decision is part of a strategic shift to focus on community-driven blockchain support, aiming to balance maintainability, usage, and community interest.

Strategic transition in focus

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Starting Monday, Tether will cease minting new USDT on Algorand and EOS. However, the company will continue redeeming the stablecoin on these blockchains for the next 12 months. This move signifies Tether’s intention to streamline its operations and prioritise platforms with higher usage and community engagement.

USDT distribution across blockchains Currently, there are approximately $113 billion of USDT in circulation, distributed across 16 different blockchains.

Despite this wide distribution, the majority of USDT is concentrated on just two blockchains: $59 billion on Tron and $52 billion on Ethereum.

In stark contrast, Algorand holds only $85 million of USDT, accounting for a mere 0.08% of the total supply, while EOS has just $17 million, or 0.015% of the total supply.

Implications for Algorand and EOS

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The decision to stop minting USDT on Algorand and EOS reflects their relatively low usage compared to other platforms. For users and developers on these blockchains, the ability to redeem USDT will remain unaffected for the next year, allowing for a transition period.

This change may prompt a shift towards more popular platforms like Tron and Ethereum, where USDT usage is significantly higher.

Tether’s move to halt USDT minting on Algorand and EOS highlights a strategic focus on blockchains with greater community support and higher usage.

By concentrating resources on more popular platforms, Tether aims to enhance the stability and maintainability of its stablecoin operations.

Algorand EOS Ethereum Stablecoin Tether Tron Blockchain technology Crypto