Tech
Tether’s Strategic Decision on USDT Minting
Explore the impact of Tether’s strategic decision to mint more USDT tokens on the cryptocurrency market dynamics and investor sentiment. Learn how this move could influence the stability and liquidity of USDT.
Tether, the issuer of the world’s largest stablecoin, has announced a strategic decision to halt the minting of the dollar-linked USDT token on the Algorand and EOS blockchains. This move is part of a transition aimed at prioritizing community-driven blockchain support.
The project’s objective is to find a balance between maintainability, usage, and community interest, as highlighted in a recent blog post by Tether.
Effective immediately, the minting of new USDT will no longer take place on Algorand and EOS. However, Tether will continue to facilitate the redemption of the stablecoin on these two blockchains for the next 12 months.
As per Tether’s website data, the total circulating supply of USDT amounts to approximately $113 billion, spread across 16 different blockchains. The majority of USDT is concentrated on just two chains: around $59 billion on Tron and $52 billion on Ethereum.
Notably, the amount of USDT on Algorand is a mere $85 million, accounting for only 0.08% of the total supply. Similarly, on EOS, the USDT circulation is just $17 million, representing a minimal 0.015% of the total supply.