Even though Tron price has climbed to stable levels, it has not been spared the wrath of bears after hitting a high in February. Like other altcoins like Solana and Ethereum, whose prices hit 2024 highs in March, Tron remains in the red over the past month of trading and has yet to conquer recent highs.
As TRX and ETH try to make up for 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 Billion to $1 Billion
An analyst on note that the decline in minting activity, and thus general blockchain usage across both networks, saw USDT issuance fall from 7 billion to just 1 billion by early July.
The decline, which mirrors the price contraction in June, indicates reduced business activity and plummeting demand for cryptocurrencies during that period.
Despite Ethereum’s dominance, Tron is the preferred network for users looking to create USDT. Unlike the world’s leading smart contract platform, Tron is scalable and inexpensive to build.
Progress has been made to scale Ethereum. The rise of more than a dozen layer 2 Ethereum platforms like Base and Arbitrum helps solidify its position as the largest ecosystem.
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Although gas fees have been decreasing over the months, developers have made good progress in making Layer 2 transactions much cheaper through upgrades such as Dencun.
With this update, users who would otherwise create tokens like meme coins or stablecoins on Tron can choose to do so on Ethereum layer 2 solutions like Arbitrum.
The decline in USDT minting on Ethereum and Tron suggests that demand for crypto is declining. Usually, whenever there is a massive USDT mint, Bitcoin and crypto prices tend to rise.
Therefore, until USDT minting activity resumes on these major smart contract platforms, the prices of Bitcoin and major altcoins will likely remain low.
Tether partners with Uquid, stops minting on EOS and Algorand
July 1, Tether hands clasped with Uquid to improve payments in the Philippines using the TON blockchain. The goal is to modernize payment processes for the Southeast Asian government-run social security systemBeyond that, the goal is to make payments safer, faster and more efficient.
Even as Tether, the issuer of USDT, forms more partnerships, it announcement the end of USDT minting on the Algorand and EOS networks. USDT buybacks will continue next year, however.
Although EOS and Algorand have been released, USDT can be issued on more than ten platforms. CoinMarketCap said more than 110 billion dollars of the token were hit cumulatively.
Featured image from Canva, chart from TradingView
