Stablecoin issuer Tether has ceased support for Kusama, Bitcoin Cash Simple Ledger Protocol (SLP), and Omni Layer citing a lack of demand.
Tether’s USDT stablecoin currently has the biggest market share and supports major blockchains in allowing for the convenient transfer of funds.
Tether Discontinues Support Citing Strategic Transition
Through an official announcement, Tether explained:
“If a blockchain lacks significant traction over an extended period and shows no signs of recovery in usage indicators, maintaining support becomes inefficient and may jeopardize security and oversight.”
While Tether will discontinue minting USDT on Kusama, Bitcoin Cash SLP, and Omni Layer, it will allow users to redeem their stablecoin on these protocols for at least the next year. It will also facilitate swapping USDT to other chains.
BeInCrypto reported that Omni Layer was responsible for over 50% of Bitcoin Opcode transactions in 2018. However, its popularity declined gradually, and USDT usage also eventually decreased in the Omni Layer protocol.
Tether mentions that if the user activity increases in the Omni Layer, it will again start supporting the protocol with USDT minting.
USDT Remains Dominant Market Player Despite Criticism
Over the years, Tether has frequently appeared the community’s radar as they question its claims that USDT is backed one-to-one by the US dollar. However, earlier this month, Tether won a legal victory against a class action lawsuit concerning its reserves.
Tether also remains controversial as it has frozen users’ assets in the past. Some even question its frequent usage in illicit transactions. Despite these criticisms, Tether remains the dominant player compared to other stablecoins.
According to data from DefiLlama, it has a 67.16% market share. The second largest competitor, USDC, has a 20.81% market share.
And new stablecoins, such as PayPal’s PYUSD, are emerging to challenge the dominance of USDT.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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