Tether is halting USDT issuance on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand due to consistently declining usage volumes over the past two years. These networks collectively represent less than 0.1% of USDT’s $110 billion circulation, making maintenance economically unviable. The decision aligns with Tether’s strategy to prioritize high-demand environments like Ethereum, Tron, and emerging Layer 2 solutions.
The phaseout, effective September 1, 2025, reflects broader industry migration toward scalable infrastructure. Tether explicitly cited Layer 2 networks as primary beneficiaries of reallocated resources, signaling confidence in solutions like Arbitrum and Optimism for future stablecoin dominance. Users must migrate holdings before the deadline to avoid redemption complications.
This consolidation underscores the competitive evolution of blockchain infrastructure, where networks failing to achieve critical mass lose ecosystem support. The move may accelerate capital rotation toward Layer 2 ecosystems while pressuring abandoned chains to demonstrate renewed utility. Market observers view this as validation of Ethereum’s scaling roadmap and a blow to alternative Layer 1 viability.
