Tether Ceases Support for Kusama, Bitcoin Cash SLP, and Omni Layer
Tether, the issuer of the USDT stablecoin, has announced that it will stop supporting Kusama, Bitcoin Cash SLP, and Omni Layer due to a lack of demand. While Tether currently has the largest market share among stablecoins and supports major blockchains, it has decided to discontinue minting USDT on these protocols. However, users will still be able to redeem their stablecoin on these protocols for at least the next year and can also swap USDT to other chains.
Reason for Discontinuing Support
Tether explained that if a blockchain does not gain significant traction over time and shows no signs of recovery in usage indicators, it becomes inefficient to maintain support. This decision is taken to ensure security and oversight. Tether mentions that it may reconsider supporting the Omni Layer protocol in the future if user activity increases.
Tether’s Dominance and Controversies
Despite facing criticism and controversies, Tether remains the dominant player in the stablecoin market. It has a 67.16% market share, significantly higher than its closest competitor, USDC, which has a 20.81% market share. Tether has faced questions about the backing of USDT and has frozen users’ assets in the past. However, it recently won a legal victory against a class action lawsuit concerning its reserves. The emergence of new stablecoins, like PayPal’s PYUSD, poses a challenge to Tether’s dominance.
Hot Take: Tether’s Strategic Transition Reflects the Evolving Stablecoin Market
Tether’s decision to discontinue support for certain protocols is a strategic move to adapt to changing market dynamics. As the stablecoin market continues to evolve, competition from new entrants and the need to maintain security and oversight demand constant adjustments. While Tether remains the market leader, emerging stablecoins may pose a threat and force further innovation in the space. The future of stablecoins will be determined by their ability to address user needs, provide transparency, and navigate regulatory challenges.
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