Tether has announced the discontinuation of USDt redemptions on five legacy blockchains as part of its infrastructure review.
Tether's Announcement of Discontinuation
Tether announced that starting September 1, 2023, it will cease support for USDt on the Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand blockchains. In a statement, CEO Paolo Ardoino noted that "sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement."
Impact on Users and Blockchain Data
A recent review of USDt balances across the affected blockchains showed a net circulation of $82.9 million on the Omni Layer, while other networks had smaller amounts: Bitcoin Cash SLP with $986,500, Kusama with $240,000, EOS with $4.2 million, and Algorand with $841,600. The decision to discontinue support has been anticipated, as Tether had already announced it would no longer issue USDt on the Omni Layer in August 2023.
Situation on Algorand
According to DefiLlama, USDt is the third-most-popular stablecoin on the Algorand blockchain. A representative for the Algorand Foundation stated that "our users should experience no disruption, given Tether made the decision to stop offering Tether on Algorand last year." Additionally, Algorand's revenue amounted to $42,300 over the last month, indicating the platform's financial condition.
Tether's decision to discontinue USDt support on several blockchains emphasizes the company's focus on more efficient platforms. It is expected that this decision will not lead to significant changes for Algorand users.
