Tether is halting USDT issuance on Omni, Bitcoin Money SLP, Kusama, EOS, and Algorand resulting from persistently declining utilization volumes over the previous two years. These networks collectively signify lower than 0.1% of USDT’s $110 billion circulation, making upkeep economically unviable. The choice aligns with Tether’s technique to prioritize high-demand environments like Ethereum, Tron, and rising Layer 2 options.
The phaseout, efficient September 1, 2025, displays broader business migration towards scalable infrastructure. Tether explicitly cited Layer 2 networks as major beneficiaries of reallocated assets, signaling confidence in options like Arbitrum and Optimism for future stablecoin dominance. Customers should migrate holdings earlier than the deadline to keep away from redemption issues.
This consolidation underscores the aggressive evolution of blockchain infrastructure, the place networks failing to realize vital mass lose ecosystem assist. The transfer could speed up capital rotation towards Layer 2 ecosystems whereas pressuring deserted chains to exhibit renewed utility. Market observers view this as validation of Ethereum’s scaling roadmap and a blow to different Layer 1 viability.
This text is for informational functions solely and doesn’t represent monetary recommendation. Please conduct your individual analysis earlier than making any funding choices.
Be happy to “borrow” this text — simply don’t neglect to hyperlink again to the unique.
Editor-in-Chief / Coin Push Dean is a crypto fanatic primarily based in Amsterdam, the place he follows each twist and switch on the earth of cryptocurrencies and Web3.