Despite being pumped into spot market prices, Tron has not escaped the wrath of the bulls after hitting its peak in February. Like other altcoins such as Solana and Ethereum, which surged to 2024 highs in March, Tron has been in the red for the last month of trading and has yet to surpass recent highs.
While TRX and ETH are trying to shake off recent losses, something else is happening: in Tron and Ethereum, demand for USDT, the world’s most valuable stablecoin, is rapidly declining.
USDT minting activity on Ethereum and Tron drops from $7 to $1 billion
One analyst on X male The decline in minting activity, and thus overall blockchain usage in both networks, has seen USDT issuance drop from 7 billion to just 1 billion as of early July.
This decline, which reflects the price contraction in June, indicates lower trading activity and lower demand for cryptocurrencies during that period.
Despite the dominance of Ethereum, Tron is the preferred network for users looking to mint USDT. Unlike the world’s first smart contract platform, Tron is scalable and cheap to transact.
Ethereum has made progress in scaling. The emergence of more than a dozen layer-two platforms for Ethereum such as Base and Arbitrum is helping to cement its position as the largest ecosystem.
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Despite the decrease in gas fees over the past months, developers have made good progress in making layer 2 transactions much cheaper through upgrades like Dencun.
With this update, users who would have created tokens such as meme coins or stablecoins on Tron can choose to do so on Ethereum layer-2 solutions like Arbitrum.
The decrease in USDT minting on Ethereum and Tron indicates a decrease in demand for cryptocurrencies. Usually, whenever there is a large amount of USDT minted, the prices of Bitcoin and cryptocurrencies tend to rise.
Therefore, until USDT mining activity resumes on top smart contract platforms, Bitcoin and top altcoins prices are likely to remain low.
Tether partners with Uquid, stops minting on EOS and Algorand
On July 1st, Tether Hands clasped With Uquid to boost payments in the Philippines using TON blockchain. The goal is to modernize payment processes for the Southeast Asian government-run social security systemMoreover, the goal is to make payments more secure, faster and efficient.
Although Tether, the issuer of USDT, is making more partnerships, it is also Announce Finishing USDT minting on Algorand and EOS networks. However, USDT redemptions will continue over the next year.
Despite the release of EOS and Algorand, USDT can be minted on more than ten platforms. CoinMarketCap He says More than $110 billion Who has the token? They were minted cumulatively.
Featured image from Canva, chart from TradingView