Tether has announced plans to cease support for its stablecoin USDT on five blockchains by September 1, 2025, driven by the need for infrastructure optimization.
Ending Blockchain Support
Tether stated it will end support for USDT on five blockchains, including Omni Layer and Bitcoin Cash SLP, by September 2025. This decision is part of a strategy to optimize infrastructure for better serving actively developed networks. Tether's CEO Paolo Ardoino remarked, "A broader effort to optimize infrastructure, align with community usage trends, and refocus resources toward high-utility, actively developed blockchains."
Market Impact Expectations
This change affects a small portion of USDT's total market, as Ethereum and Tron handle the majority of its volume. Users are encouraged to transfer their assets before the deadline. Liquidity on the impacted chains is expected to gradually decrease to zero.
Overall USDT Situation
The market response has been calm, with no major volatility anticipated for USDT prices. As of the latest update, USDT remains stable at $1.00, with a market cap of $159.12 billion. The stablecoin's price exhibited a minor 0.03% decline over the past 24 hours.
Analysis indicates that Tether's shift to support more active blockchains will not lead to significant financial repercussions, as evidenced by USDT's limited activity on the affected platforms.
