Tether Halts USDT Minting on Algorand and EOS

The largest stablecoin in the world, Tether, has said that it would no longer be minting its USDT token, which is tied to the dollar, on the Algorand and EOS blockchains. This move is a part of a “strategic transition to prioritize community-driven blockchain support,” a blog post from Monday stated.

Tether’s goal is to “strike a balance between maintainability, usage, and community interest.” Tether plans to concentrate resources on more well-liked and frequently-used blockchains by stopping the minting of fresh USDT on Algorand and EOS. To provide a seamless transition for existing users, Tether will continue redeeming the stablecoin on Algorand and EOS for the next 12 months, even if fresh minting will cease.

Distribution and Market Dynamics

Currently, there are approximately $113 billion of USDT in circulation, spread across 16 different blockchains. However, the vast majority of USDT is concentrated on two major chains: Tron and Ethereum. Tron holds about $59 billion of USDT, while Ethereum holds approximately $52 billion.

In contrast, Algorand and EOS account for only a small fraction of the total USDT supply. Algorand holds around $85 million, representing a mere 0.08% of the total supply. EOS holds even less, with just $17 million, or 0.015% of the total supply. This significant disparity highlights why Tether has chosen to halt minting on these less utilized platforms.

By focusing on blockchains with higher usage and community interest, Tether aims to enhance the efficiency and impact of its USDT stablecoin. This strategic move aligns with Tether’s ongoing efforts to adapt to market demands and optimize its operations for broader community support.