Bitrabo Editorial
Tron, along with other altcoins like Solana and Ethereum, experienced a drop in prices after reaching peaks earlier in the year. A noticeable decrease in the minting of USDT, the top stablecoin, is happening on both Tron and Ethereum.
USDT Minting Activity Decline
A recent report highlighted a significant reduction in minting activity on Tron and Ethereum, resulting in USDT issuance dropping from $7 billion to just $1 billion by early July. This decline aligns with the contraction in the cryptocurrency market during the same period.
Although Ethereum is the dominant player, Tron remains a popular choice for users looking to mint USDT due to its scalability and lower transaction costs.
Recent advancements in scaling Ethereum, including the emergence of multiple layer-2 solutions like Base and Arbitrum, have solidified its position as the leading ecosystem.
Developers have been striving to reduce transaction costs on Ethereum’s layer-2 through enhancements like Dencun, making it more attractive for users to mint tokens compared to traditional platforms like Tron.
The decrease in USDT minting across both platforms indicates a decline in crypto demand, potentially influencing the prices of Bitcoin and other cryptocurrencies.
Tether’s Strategic Moves
Tether recently partnered with Uquid to improve payment processes in the Philippines utilizing the TON blockchain, enhancing efficiency and security. Concurrently, Tether announced the discontinuation of USDT minting on EOS and Algorand networks, focusing on community-driven blockchain support.
While USDT minting on EOS and Algorand ceases, USDT can still be minted on various other platforms, with over $110 billion of the token cumulatively minted, according to CoinMarketCap.