Tether, the largest stablecoin issuer on the market, announced that it will end support for Kusama—effective September 1, 2025. After this date, it will no longer be possible to redeem or transfer USDT on these networks, and remaining tokens will be frozen. The decision is part of a strategy to focus on blockchains with greater scalability, developer activity, and community engagement, such as layer-2 networks.
In the specific case of Kusama, the direct impact is limited, as the total value of USDT issued on the network is relatively small (approximately US$3.5 million). However, the move is symbolic and may indicate a lack of trust and future institutional disinterest in blockchains with less use and development.
How this may affect the price of the KSM (Kusama) token:
Lower liquidity: The withdrawal of USDT reduces liquidity on the Kusama network, hindering transactions and the use of dApps with stablecoins, which may discourage users and investors.
Negative signal for the ecosystem: This could be seen as a sign of weakening or stagnation in the Kusama ecosystem, driving away new projects and capital.
Selling pressure: Holders of USDT and Kusama-related assets may sell KSM tokens to migrate to more active networks.
Short-term impact: The decline may not be immediate, but closer to the deadline (September), we may see downward pressure on the KSM price.
Conclusion: