Ethereum News Today: Tether Rethinks Chains to Focus on Dominant Ethereum and Tron

Tether recently minted an additional $1 billion in USDT on the Ethereum network, according to on-chain monitoring by Onchain Lens, marking the third consecutive day of significant USDT creation, with a cumulative total of $3 billion issued across these days. This activity highlights ongoing demand for USDT, especially on Ethereum, where it continues to hold a dominant position alongside USDC . As of the latest data, the stablecoin market cap stands at $285.9 billion, with USDT and USDC leading at $167.4 billion and $71.5 billion respectively.

Tether has also revised its approach to support for USDT on several blockchains. It has abandoned its earlier plans to freeze USDT smart contracts on Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand . While users will still be able to transfer tokens on these networks, Tether will no longer issue or redeem USDT directly on these chains. The decision reflects broader strategic considerations, including a focus on blockchains with strong developer activity, scalability, and user demand.

Among the affected chains, Omni Layer holds the largest USDT supply, with a circulating balance of $82.9 million, significantly higher than the $4.2 million on EOS and the under $1 million on the remaining three chains. This change has been in development for two years, with initial announcements in August 2023 and further steps in June 2024. Tether has maintained its support for Ethereum and Tron , where USDT remains the most widely adopted stablecoin. Tron and Ethereum alone account for $80.9 billion and $72.4 billion of USDT supply, according to DeFiLlama.

The broader stablecoin market has also seen notable developments. Stablecoin liquidity remains robust, though the rate of growth has slowed. Weekly expansions in stablecoin market capitalization have dropped to approximately $1.1 billion, down from the $4–8 billion weekly inflows seen in late 2024. Despite this slowdown, exchange reserves for stablecoins have hit record highs. As of August 22, the total stablecoin value held on exchanges reached $68 billion, with USDT and USDC accounting for $53 billion and $13 billion, respectively. These reserves indicate a continued appetite for liquidity among traders and institutions.

Looking ahead, the stablecoin landscape appears poised for further regulatory and market evolution. The passage of the GENIUS Act in the U.S. and regulatory frameworks like the EU’s MiCA suggest that stablecoin issuance will become more transparent and standardized. Analysts anticipate that these changes will reinforce the U.S. dollar’s global dominance and drive the stablecoin market toward a $2 trillion valuation by 2028, as projected by the U.S. Department of the Treasury. These developments underscore the growing role of stablecoins not only in crypto ecosystems but also in broader financial infrastructure and cross-border payments.

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