Stablecoin Issuer Tether has left its plan to freeze smart USDT contracts with five chains, saying the tokens will remain transferred but will not be released or redeemed.
Modified plan affects users in Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand, Tether Says On Friday after the comments were received from members of these ecosystems. “Following the comments from the communities of these unstoppable blockchains, Tether changed this procedure and could not refreeze intelligent contracts with these networks.”
While users will be able to move tokens to these blockchains, Tether stops direct release and redemption on these chains. “This means that tokens are no longer officially supported as other Tether’s tokens.” The initial plan is to end the support on Sept. 1.
The decision aligned with Tether’s broader approach to remain focused on expanding support for crypto ecosystems with strong developer activity, scalability, and user demand – without fully abandoning chains that have long been supported. Only a small number of smart blockchains based on the Layer-1 contract that succeeded in achieving large-scale adoption of the user and offered practical cases of use, including Tron and Ethereum-the two chain tether provides the most support for.
Tron and Ethereum leads to USDT adoption
The Tron and Ethereum have $ 80.9 billion and $ 72.4 billion worth of USDT supply that shifts -transfer to their chains, while the BNB chain rotates to the top three to $ 6.78 billion, DefillaMa Data Shut up.
Solana, along with the Ethereum Layer-2 Chain Arbitrum and Base, belongs to other thriving crypto ecosystems Stablecoin strong activity, Although they mainly use the USDC Stablecoin of the Circle instead of USDT.
Omni layer that is most affected
A review of USDT balances throughout the affected blockchains Shut up That omni layer is most effective because it holds a net circulation of $ 82.9 million USDT, while other networks have smaller participation: EOS has $ 4.2 million, while the Bitcoin Cash SLP, Algorand, and Kusama all have under $ 1 million worth of USDT.
Tether’s sunset for these blockchains has been in works for two years. In August 2023 the company announced that it was no longer Issue USDT to Omni LayerKusama, and Bitcoin Cash SLP. In June 2024, Tether Stop Minting with EOS and Algorand.
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Stablecoins’ total market cap is currently seating $ 285.9 billion, led by the USDT and USDC for $ 167.4 billion and $ 71.5 billion, respectively, coingecko data shows.
Stablecoin market set to strengthen in the coming years
Last month, US president Donald Trump Signed the Genius Act in law, Which many analysts say to boost the US dollar dominance by promoting stablecoins that are dollars, competing with other currencies, and strengthening the role of dollars as the world’s leading currency.
US Department of the Treasury expects Stablecoin Market Grew to $ 2 trillion by 2028.
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