As an experienced analyst, I’ve seen my fair share of market ups and downs, and the recent trend in Tron (TRX) and Ethereum (ETH) is no exception. The fact that both cryptocurrencies have been unable to regain their losses from the past month, despite attempts to do so, is a cause for concern.
Despite hitting all-time highs in February, Tron wasn’t immune to the selling pressure and dipped in price along with other cryptocurrencies such as Solana and Ethereum during March. Presently, Tron is showing losses for the past month and still struggling to surpass its previous peaks.
In the case of Tron and Ethereum, as these cryptocurrencies try to recover from recent losses, an intriguing trend emerges: The need for USDT, the highly valued stablecoin in the global market, is experiencing a significant decrease in demand.
USDT Minting Activity On Ethereum And Tron Falls From $7 To $1 Billion
As a researcher studying the blockchain ecosystems of X, I’ve observed a significant decrease in mining activities across both networks. Consequently, this downturn has led to reduced overall blockchain usage. Notably, the issuance of USDT – a prominent stablecoin – has dropped dramatically from approximately 7 billion to merely 1 billion by early July.
As an analyst, I’ve observed a noteworthy decrease in prices during the month of June, which is reflective of diminished trading activity and waning demand for cryptocurrencies during that timeframe.
As a crypto investor, I’ve noticed that while Ethereum holds the crown as the dominant platform for smart contracts, there are some who prefer Tron when it comes to minting USDT. The reason being, Tron outshines Ethereum in terms of scalability and affordability. Unlike Ethereum, which can sometimes be congested and expensive to transact on, Tron offers a smoother and more cost-effective experience for users looking to mint stablecoins like USDT.
As an analyst, I’ve observed significant advancements in scaling Ethereum. The emergence of over a dozen Layer-2 solutions such as Base and Arbitrum strengthens Ethereum’s status as the leading ecosystem.
Over the past few months, gas fees have seen a downward trend. Meanwhile, developers have achieved significant advancements in reducing transaction costs on layer-2 networks through upgrades such as Dencun.
With this new development, individuals previously intending to create tokens such as meme coins or stablecoins on the Tron platform now have the alternative of utilizing Ethereum’s layer-2 solutions, specifically Arbitrum, instead.
The decrease in USDT production on Ethereum and Tron networks indicates a potential decline in cryptocurrency market demand. Typically, large-scale USDT issuance is associated with rising prices for Bitcoin and other cryptocurrencies.
Until new USDT minting occurs on leading smart contract platforms, it’s expected that the prices of Bitcoin and major altcoins will stay subdued.
Tether Partners With Uquid, Stops Minting On EOS and Algorand
Starting on July 1, Tether collaborated with Uquid to improve payment solutions in the Philippines, utilizing the TON blockchain. The ultimate aim is to revamp the payment systems for the Southeast Asian Government-run Social Security System. Moreover, this partnership aspires to ensure payments are more secure, expeditious, and productive.
Tether, the company behind USDT, is expanding its collaborations, yet simultaneously declared the end of new USDT creation on Algorand and EOS platforms. Redemption of USDT, nevertheless, remains available for the ensuing year.
While EOS and Algorand are no longer options, USDT can be generated on more than ten different platforms. According to CoinMarketCap, a total of over $110 billion worth of this token has been produced in cumulation.
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2024-07-01 21:41