Bank

Bitcoin

Algorand

Tether has <a href="https://tether.io/news/tether-announces-strategic-transition-to-prioritize-community-driven-blockchain-support/" rel="nofollow noopener" target="_blank">announced</a> plans to discontinue USDT support on Algorand and EOS blockchains. The stablecoin issuer disclosed that minting will stop immediately, but the stablecoin will remain redeemable on the network for the next 12 months. 
Also read: <a href="https://www.cryptopolitan.com/tether-surpasses-visa-in-daily-transaction/">Tether surpasses Visa in daily transaction volume on Tron</a> 
This move marks the second time Tether will discontinue USDT minting on a blockchain network in less than a year. However, it still supports stablecoin issuance on over ten networks, including Solana, Tezos, Ethereum, and Tron. Most of the USDT circulating supply is on Tron and Ethereum, which account for about 101 billion USDT of the tokens issued. 
<h2 id="exiting-the-networks-is-a-strategic-decision">Exiting the networks is a strategic decision</h2> 
Tether described its decision to stop minting on the two networks as a “strategic transition” to focus on blockchains with significant interest in its USDT stablecoin. The firm said it would evaluate the existing networks it supports based on their “usage, maintainability, and community interest.” 
<blockquote>
 “We carefully evaluate the network’s security architecture to ensure the safety, usability, and sustainability of the chosen blockchain. Our goal is to allocate resources where they can best enhance security and efficiency while continuing to support innovation across the crypto landscape.”
</blockquote> 
Meanwhile, the company assured its users that the transition would be smooth and have as little disruption as possible. It also promised to continue supporting protocols and blockchain networks with wide USDT adoption and use cases. 
<h2 id="tether-s-usdt-remains-the-most-dominant-stablecoin">Tether’s USDT remains the most dominant stablecoin</h2> 
Tether’s decision is unlikely to affect USDT supply and dominance among stablecoins. Its circulating supply on the two networks accounts for less than 0.1% of the market cap. <a href="https://defillama.com/stablecoins" rel="nofollow noopener" target="_blank">Defillama</a> data shows that the USDT supply on Algorand is $17.22 million, while EOS has a higher supply at $75.44 million. 
Also Read: <a href="https://www.cryptopolitan.com/tether-prints-1b-tokens-month-usdt-faces-eu/">Tether prints 1B tokens in a month, USDT faces EU regulation demands</a> 
Despite abandoning several blockchain networks during the past year, USDT has continued to perform strongly, evidenced by its current market capitalization of $112.84 billion and dominance at 69.59%. Moreover, the company has also expanded its business into other ventures, including Bitcoin mining and investments in artificial intelligence-related companies. 
<figure id="attachment_546274" aria-describedby="caption-attachment-546274" style="width: 100%" class="wp-caption aligncenter">
 <img loading="lazy" decoding="async" class="size-full wp-image-546274" src="https://www.cryptopolitan.com/wp-content/uploads/2024/06/Screenshot-2024-06-24-181325.png" alt="Tether USDT circulating supply" width="652" height="493" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/06/Screenshot-2024-06-24-181325.png 652w, https://www.cryptopolitan.com/wp-content/uploads/2024/06/Screenshot-2024-06-24-181325-300x227.png 300w" sizes="(max-width: 652px) 100vw, 652px">
 <figcaption id="caption-attachment-546274" class="wp-caption-text">
 Tether Tokens in Circulation (Source: Tether)
 </figcaption>
</figure> 
However, despite its dominance, Tether faces intense scrutiny over its assets. Last month, analysts at Deutsche Bank warned that stablecoin, including USDT, could witness a “peso moment” that would devastate the crypto industry. Additionally, there are suggestions that the US government was targeting the stablecoin due to undisclosed reasons.

Tether ceases USDT issuance on Algorand and EOS

İçindekiler

Cryptopolitan_News

24 Haz 2024 tarihli diğer yazılar

Top Crypto Presale: MoonBag Raises $2.8M Within A Month, Kangamoon and Near Protocol in Deep Trouble

New Solana Memecoin Degen Black Pepe (DEGBPEPE) Will Explode 17,000% in Two Days – How to Buy?

Shytoshi Kusama's Crucial Message on Crypto Market Sent to SHIB Community

‘Users are choosing TRON:’ Why TRX breathes easy amidst a sloth of bears

Bundesbank President unsure on digital euro’s holding limits

MoonBag’s Top Meme Coin Presale in 2024 Annihilates Cosmos and ChainGPT

Güncel kripto para haberleri için ücretsiz bültenimize abone olun!