Revolution in Stablecoin Arena: Tether Faces Emerging Challenges
The cryptocurrency landscape is undergoing a significant transformation as global regulatory frameworks tighten and demand for transparency escalates. Tether, known as the dominant stablecoin issuer, currently finds its leading position under threat from a wave of emerging stablecoins.
The Waning Influence of Tether in the Stablecoin Sector
According to a recent analysis by SMQKE, a notable observer and researcher in the field, Tether’s stronghold in the stablecoin industry may soon diminish. The research suggests that Tether is likely to lose its market supremacy to regulated stablecoins such as RLUSD in the foreseeable future.
Advertisement Banner
In response to evolving global regulations, which aim to bridge the gap between digital and traditional finance, certain stablecoins are gaining traction. Circle’s USDC, for instance, has secured approval from the Markets in Crypto-Assets Regulation (MiCA), positioning itself as a compliant digital asset.
Conversely, Tether’s USDT seems to be falling short of regulatory expectations regarding the transparency of its underlying asset operations. This lack of compliance is paving the way for regulated stablecoins to surpass USDT and emerge as leaders in the market. The report speculates on whether Tether will continue losing market share to competitors or maintain its appeal among cryptocurrency enthusiasts.
Stablecoins such as USDP, PYUSD, USDG, and RLUSD are steadily encroaching on USDT’s market share, backed by stronger institutional affiliations and adherence to official regulations. These stablecoins are largely supported by reserves composed of liquid, high-quality assets, enhancing their appeal in the market.
Tether’s Strategic Redirection in the Stablecoin Domain
As the stablecoin sector continues to evolve, Tether, the preeminent stablecoin company, is actively strategizing to sustain its operational reliability. Recent reports indicate that Tether is planning a significant shift by withdrawing support from several major blockchain networks in the coming months.
In a groundbreaking development, Tether has declared its intention to cease USDT support on five prominent blockchains, aiming to streamline its operations and increase network efficiency. This decision was publicized by the Phoenix Group, a notable crypto media outlet, on the X platform.
The planned disconnection is set to occur by September 2025, marking a strategic move by Tether to phase out blockchains that no longer satisfy the evolving technical or community criteria. This shift underscores Tether’s dedication to preserving liquidity and security throughout its ecosystem.
The blockchains identified for discontinuation include Omni Layer, Bitcoin Cash, Kusama Network, EOS Network, and Algorand. Starting September 1, 2025, Tether will halt USDT redemptions and freeze residual tokens on these platforms.
This decision follows a comprehensive infrastructure assessment and signifies Tether’s commitment to transitioning towards more scalable and widely used networks. Tether has advised users holding USDT on the affected blockchains to redeem or transfer their tokens to other supported networks before the deadline to avoid potential loss of assets.
Overall, the USDT market capitalization stands at $159.58 billion, a reflection of its significant presence in the cryptocurrency market.
Our Editorial Standards and Integrity
The editorial process at bitcoinist prioritizes delivering deeply researched, precise, and impartial content. We adhere to stringent sourcing protocols, ensuring each article undergoes meticulous review by our team of leading technology experts and experienced editors. This rigorous process guarantees the quality, relevance, and value of our content for our esteemed readers.
