Tether, the issuer of the world’s largest stablecoin USDT, has abandoned its plan to freeze smart contracts on five blockchains. The affected chains include Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand. This decision comes after feedback from community members, ensuring that tokens on these networks will remain transferable but not redeemable or newly issued.
Tether’s Updated Strategy Explained
Initially, Tether announced it would end support on September 1, which meant freezing USDT on the above blockchains. However, the revised plan allows users to continue transferring tokens, although official support and redemption services will no longer be provided.
Tether emphasized that its long-term strategy is to focus on ecosystems with strong developer activity, scalability, and adoption, such as Ethereum and Tron, where most USDT transactions occur.
Why These Blockchains Are Affected
The impacted blockchains have seen low adoption and minimal user activity compared to leading chains. Data shows:
- Omni Layer: Holds the highest balance among affected chains, with $82.9 million in USDT.
- EOS: Approximately $4.2 million.
- Bitcoin Cash SLP, Algorand, Kusama: Each with under $1 million.
This shift has been in progress for two years, with Tether gradually halting issuance on these networks since 2023.
Ethereum & Tron Dominate USDT Market
According to DeFiLlama, the largest USDT supplies are on:
- Tron: $80.9 billion
- Ethereum: $72.4 billion
- BNB Chain: $6.78 billion
These figures highlight where stablecoin adoption is strongest, as Tether continues prioritizing blockchains with real-world utility and active user bases.
The total stablecoin market cap stands at $285.9 billion, led by USDT and USDC at $167.4 billion and $71.5 billion, respectively. Analysts expect the market to reach $2 trillion by 2028, supported by regulatory clarity and increasing institutional adoption.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.