In the last hour, Tether has issued a statement. They’ll be stopping USDT support on five smaller-used blockchains as well—Omni, BCH, Kusama, EOS, and Algorand. The firm recommends customers with USDT on these networks to migrate as soon as possible. Claim your assets today or submit an exchange request for the issuance of your tokens on a supported blockchain! This decision is emblematic of Tether’s broader strategy to look beyond Ethereum and support growth on Layer 2 networks and newer blockchain ecosystems.
The reason behind the decision to end support for these particular blockchains is due to an extreme decrease in USDT utilization. Until now, fewer travelers have used these networks in recent years. Combined, these five networks represent only a sliver of USDT’s circulating supply, which currently hovers around $156 billion. This action allows Tether to consolidate its grip on the market and run its operations more efficiently. As it stands, Solana is now the only other network with over 1% of USDT’s total supply currently in circulation.
Tether expects that this transition will better enable Tether the firm, to channel its resources into platforms where they can scale most effectively. It will further increase developer activity and enhance community engagement and advocacy. Tether’s Chief Technology Officer, Paolo Ardoino, underscored the company’s focus on driving innovation and adoption within the stablecoin industry.
"Sunsetting support for these legacy chains allows us to focus on platforms that offer greater scalability, developer activity, and community engagement — all key components for driving the next wave of stablecoin adoption." - Paolo Ardoino
The firm’s attention has recently turned to Layer 2 networks, in particular the Lightning Network. It will dive into some of the newer blockchains that provide faster settlement times and more robust tooling for developers. This strategic pivot underscores Tether’s long-term dedication to evolving in the constantly transforming cryptocurrency landscape. The company is concentrating on those platforms that will lead the next growth phase and adoption of the USDT.
