TRX And ETH Attempt to Unwind Recent Losses as Demand for USDT Falls From $7T to $1B
- WBOYOriginal
- 2024-07-02 07:58:01639browse
Even though pumping at spot rates, Tron wasn't spared the wrath of bears after peaking in February. Like other altcoins like Solana and Ethereum
Tron (TRX) encountered difficulties following its peak in February despite pumping at spot rates. Like other altcoins, Tron has remained in the red in the last month of trading.
As TRX and ETH attempt to recover from recent losses, another trend is emerging: Demand for USDT, the world’s leading stablecoin, is rapidly declining in both Tron and Ethereum.
An analyst on X noted the decline in minting activity, which has seen USDT issuance drop from 7 billion to just 1 billion as of early July. This decline, which mirrors the price contraction in June, indicates reduced trading activity and free-falling demand for cryptocurrencies during that period.
While Ethereum maintains its dominance, Tron is a preferred network for users seeking to mint USDT. This preference stems from Tron's scalability and low transaction costs compared to Ethereum.
However, recent developments aim to strengthen Ethereum's position as the largest ecosystem. The rise of more than a dozen Ethereum layer-2 platforms, such as Base and Arbitrum, contributes to this effort.
Despite the gradual decrease in gas fees, developers are making significant progress in reducing layer-2 transaction costs through updates like Dencun. This update allows users who would typically mint tokens like meme coins or stablecoins on Tron to opt for Ethereum layer-2 solutions like Arbitrum.
The drop in USDT minting across Ethereum and Tron suggests a decline in crypto demand. Notably, large-scale minting of USDT tends to coincide with rising Bitcoin and crypto prices.
As a result, until USDT minting activity resumes in these top smart contracts platforms, the prices of Bitcoin and top altcoins are likely to remain suppressed.
Tether Partners With Uquid, Stops Minting On EOS And Algorand
On July 1, Tether announced a partnership with Uquid to enhance payments in the Philippines using the TON blockchain. This collaboration aims to modernize payment processes for Southeast Asia's government-run Social Security System. The goal is to make payments faster, more secure, and efficient.
In another development, Tether announced the termination of USDT minting on the Algorand and EOS networks. However, USDT redemptions will continue for the next year.
While EOS and Algorand are no longer supported for USDT minting, the stablecoin can still be minted on over ten platforms. According to CoinMarketCap, more than $110 billion of the token has been cumulatively minted.
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