Tether, the major issuer of the USDT stablecoin, has announced its decision to discontinue support for its token on five blockchains. This decision is part of a broader infrastructure review.
Reasons for Ending Support
On July 11, Tether officially announced it would discontinue USDT support on five blockchains: Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. This decision was made following an analysis of usage data, which indicated declining activity on these networks. Tether is focusing on platforms that offer greater scalability and developer activity. Tether plans to freeze remaining tokens by September 1.
Historical Significance of Deprecated Chains
These blockchains previously played a significant role in the evolution of Tether. Omni, the original platform for USDT, processed over $7 million in transactions and had more than 400,000 users at its peak. The EOS blockchain attracted over 30 million monthly users due to integrations with platforms such as MetaMask. However, sustained usage on these networks has plummeted, prompting Tether to formally end support.
Future Implications and Ecosystem Impact
Tether's decision will also impact projects built on these networks. They will face tough choices: migrate liquidity, seek alternative stablecoins, or risk isolation. Tether has given users until September 1 to redeem or migrate their assets. Meanwhile, the company continues to focus on Layer 2 networks like Lightning and active ecosystems such as Ethereum and Tron, which already host the majority of USDT supply.
Tether's conclusion to cease support for certain blockchains could significantly impact the ecosystem, presenting new challenges and opportunities for users and developers. The focus on more active and scalable networks highlights the company's strategic direction for the future.
