Tether, the issuer of the world’s largest stablecoin, USDT, has announced that it will stop minting its dollar-linked tokens on the Algorand and EOS blockchains. This move is part of a “strategic transition to prioritize community-driven blockchain support.” According to Tether, this strategy aims to achieve a balance between maintainability, usage, and community interest, ensuring that resources are allocated to the most effective platforms.
The circulating supply of USDT on Algorand and EOS is minimal compared to its total supply. Specifically, only about 0.1% of the total USDT supply is present on these two blockchains. On Algorand, there are approximately $85 million worth of USDT, representing a mere 0.08% of the total USDT supply. The EOS blockchain holds even less, with just $17 million worth of USDT, which is only about 0.015% of the total supply. These figures highlight the relatively insignificant role these blockchains play in the overall distribution of USDT.
Currently, there is roughly $113 billion of USDT in circulation, distributed across 16 different blockchains. However, the vast majority of USDT is concentrated on just two blockchains: Tron and Ethereum. Tron hosts around $59 billion of USDT, while Ethereum accounts for approximately $52 billion. These two blockchains together hold a significant majority of the total USDT supply, overshadowing the relatively minor amounts on Algorand and EOS. This concentration indicates where the demand and usage of USDT are strongest.
Tether’s decision to halt minting on Algorand and EOS reflects its strategy to focus on platforms with greater community engagement and demand. This transition underscores the company’s approach to optimizing its operations and resources by concentrating on blockchains that offer higher usage and stronger community support. By reallocating resources from less utilized blockchains to those with more active communities, Tether aims to enhance the sustainability and effectiveness of its offerings in the evolving blockchain ecosystem. This strategic shift is intended to bolster Tether’s position in the market, ensuring that it remains adaptable and responsive to the needs of its user base.
The move also highlights Tether’s commitment to a more efficient and focused approach in its operations. By streamlining its blockchain support and concentrating efforts where they are most impactful, Tether seeks to provide better service and reliability to its users. This decision is a step towards more strategic management of its vast stablecoin network, aligning with broader industry trends of consolidation and optimization within the blockchain space.
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