Tether has announced its plans to stop minting USDT on two blockchains, EOS and Algorand. The transition is effective today, as Tether aims to make it a seamless experience for users with no hampering on everyday activities. USDT redemptions will be available for the next 12 months, following which Tether will evaluate circumstances and make further announcements.
The move aims to balance several factors, such as community interest, maintainability, and usage. Tether has stated that its goal is to allocate resources to blockchains with access to efficiency, enhanced security, and complete support for innovation.
Tether previously removed support for Bitcoin (BTC), Bitcoin Cash (BCH), and Kusama in August 2023. Ethereum and Tron’s blockchains host most of the USDT supply out of all the available blockchains within the ecosystem. Others that support USDT minting are Liquid Network, NEAR, Avalanche, and Solana, to mention a few.
Tether has assured the community via an official announcement that the transition will be seamless with minimal disruption, adding that they are committed to providing a hassle-free transition.
This announcement has had little impact on the native tokens of EOS and Algorand. EOS is up by 2.81% in the last 24 hours, listed at $0.5722 at the press time. ALGO has gained 4.67% during the same timeframe, exchanging hands at $0.137 while the piece is being articulated.
The move comes a week after it announced launching Alloy (AUSDT). It will be overcollateralized by XAUT, Tether Gold, to provide ownership of physical gold. Users can mint synthetic dollars by depositing XAUT via price oracles and a smart contract. This way, they will have gold-backed Tether assets when transacting with AUSDT.
Not everything is good for EOS and ALGO. They may have marked an uptick in a single day, but their values have significantly fallen in the last 30 days. EOS has shed 32.82% of its weight, while ALGO has lost 29.09% of its value in a month. The decline can be attributed to the ongoing trend wherein even flagship tokens like BTC and ETH struggle to sustain a higher margin.
A recovery in recent times signals that both could be on the edge for a rebound. BTC and ETH have fallen significantly to have a ripple effect across the crypto sphere. Bitcoin is believed to hit the lowest point soon, and ETH is speculated to rise once there is an official announcement about its ETF product or if there is an indication about its approval.
Until then, the market is likely to be under pressure, with high volatility and uncertainty on price charts.
Tether will support redemption for the next 12 months and evaluate further measures afterward. EOS and Algorand officially lost the support to mint USDT effective today.