Tether stops supporting USDT on 5 old blockchains to "reallocate resources"

Tether has just announced that it will end the ability to redeem USDT on five old blockchains, starting from September 1st. The affected platforms include Omni Layer, Bitcoin Cash SLP, Kusama, EOS ( currently Vaulta) and Algorand.

"The discontinuation of support for old chains allows us to focus on platforms with higher scalability, more active development activities, and a more vibrant user community," said Tether CEO Paolo Ardoino in a statement.

This decision is not sudden. In August 2023, Tether stopped issuing USDT on the Omni Layer, Kusama, and Bitcoin Cash SLP. By June 2024, the company will continue to cease issuing on EOS and Algorand.

Currently, USDT is the largest stablecoin in the market with a market cap of 139.4 billion USD. Among the discontinued supported blockchains, Omni Layer still records the largest circulating supply with 82.9 million USD USDT. The remaining networks have much lower usage: Bitcoin Cash SLP with 986,500 USD, Kusama 240,000 USD, EOS 4.2 million USD, and Algorand 841,600 USD.

Algorand users will not be interrupted

According to data from DefiLlama, USDT is the third most popular stablecoin on the Algorand network, while its main competitor, Circle's USDC, dominates with a market cap of nearly 73 million USD.

A representative from Algorand Foundation shared: "Our users will not experience any disruptions because Tether announced the cessation of USDT support on Algorand since last year, while giving users a year to complete the conversion. During this period, the volume of stablecoin on Algorand continues to grow."

According to data from Token Terminal, Algorand's revenue over the past 30 days reached 42,300 USD, mainly from transaction fees – a common revenue source for blockchains.

Tether stated that the reason for ending support on the Omni Layer is due to the lack of activity using USDT on this network.

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