Tether Halts USDT Minting on Algorand and EOS Networks

Key Takeaways:

• Stablecoin issuer Tether (USDT) discontinued token minting on the Algorand and EOS networks on June 24th.
• Tether cited a lack of demand as its primary reason for discontinuing Algorand and EOS USDT. Around $17 million of Algorand USDT is circulating, representing 0.01% of the USDT supply.
• Although minting is no longer available, token holders can redeem Algorand and EOS USDT for the next 12 months until June 24th, 2025.

Tether, the company that issues the world's most popular stablecoin, USDT, announced on June 24th that it would discontinue minting for Algorand and EOS USDT.

While Tether has discontinued minting for its Algorand and EOS stablecoins, users can still sell USDT for cash on the Tether website for the next 12 months, until June 24th, 2025.

Tether Announces Strategic Transition to Prioritize Community-Driven Blockchain Support
Read more: https://t.co/UCL1MJt2WO

— Tether (@Tether_to) June 24, 2024

The company cited a lack of demand for Tether (USDT) on the two networks, stating, “Community interest plays a pivotal role when we bring USDT to specific blockchains.”. Tether also said, “We will continue to support the protocols and chains that the community finds useful.”

At the time of writing, Algorand and EOS USDT account for a fraction of the total supply. Around 75 million EOS USDT (around 0.066% of the supply) and 17 million Algorand USDT (approximately 0.015%) are circulating.

Although Tether is moving away from underperforming blockchains, the stablecoin issuer has been working to bring USDT to exciting new networks. For example, USDT launched on The Open Network (TON) in April. Around $500 million worth of tokens are already circulating, approximately 500% more than Algorand and EOS combined.

Related: Toncoin Hits 600,000 Active User ATH as Telegram Mini Apps Explode

Tether's Next Moves

Tether has been regularly discontinuing products for the past few years. In 2023, the stablecoin issuer stopped minting USDT tokens on the Kusuma (KSM) and Bitcoin Cash (BCH). The recent removal of Algorand (ALGO) and EOS from the Tether lineup further reduced the stablecoin's network support.

Tether Tokens (USD₮ and XAU₮) Launch on The Open Network (TON) @ton_blockchainhttps://t.co/TwYhMeHAZ5

— Tether (@Tether_to) April 19, 2024

While Tether eliminating support for several high-profile networks may seem counterintuitive to growth, it allows the company to focus its efforts and resources on upcoming networks with superior potential, like TON, which has seen its price surge from $2 to $7.30 this year alone.

It seems likely that Tether will continue to cut underperforming networks from its stable in favor of new, more in-demand networks. We can expect to see the stablecoin issuer working closely with upcoming projects. USDT tends to boost networks substantially when the asset launches on a particular blockchain, so there is a significant incentive for a network to launch a USDT token.