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Circle has announced the cessation of USD Coin (USDC) support on the Tron blockchain.
The decision, driven by risk management considerations, marks a strategic transition for Circle and prompts analysis of TRON’s (TRX) response in the cryptocurrency market.
Immediate halt of USDC minting on Tron
Circle’s decision to discontinue USDC support on the Tron network comes as part of a phased approach, with immediate cessation of USDC minting on Tron. This move, attributed to Circle’s risk management framework, underscores the company’s commitment to maintaining the integrity and safety of USDC, one of the leading regulated digital dollars in the cryptocurrency space.
While existing USDC holders on Tron will still have until February 2025 to transfer their tokens to other blockchains, retail users and non-Circle customers are encouraged to leverage exchanges for USDC movement.
The decision aligns with Circle’s broader efforts to uphold transparency and trust within the stablecoin ecosystem.
The USD Coin (USDC) is the second-largest stablecoin after Tether (USDT) with over $26.822 billion worth of tokens in circulation. According to DefilLama data, $22.009 billion of the total amount exists on the Ethereum blockchain, $1.401 billion exists on Solana, $530.17 million exists on Polygon blockchain, $442.97 million exists on the Binance Smart Chain, $389.12 exists on Arbitrum, and $313.5 million on Tron blockchain.
TRON (TRX) resilient despite the news
Despite the announcement’s implications for the Tron network, TRX has demonstrated resilience in the face of this transition. It jumped to $0.14 before slightly retracing to $0.1397 at press time, which was still a 2% increase from yesterday’s price.
Over the past month, TRX has seen a notable increase in value, with a 26.02% growth trajectory. Trading at $0.1397, TRX maintains its position as the 11th largest cryptocurrency by market capitalization, with a market cap of $12,280,854,279.
The steady growth of TRX amidst Circle’s decision highlights the network’s robustness and the confidence of its investors. With a 24-hour trading volume of $432,519,250, TRX continues to attract attention within the cryptocurrency market, showcasing its relevance and stability despite changes in the broader ecosystem.
However, the cryptocurrency community will closely monitor TRX’s movements into the future as Circle progresses with its phased transition away from Tron support for USDC.
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