USDT Minting on Ethereum and Tron Falls From $7 Billion to $1 Billion in 6 Months

Even though it pumped in noticeable amounts, Tron did not survive the wrath of the bears after the high in February. Like other altcoins such as Solana and Ethereum, whose prices rose to 2024 highs in March, Tron remains in the red in the last month of trading and has not yet conquered recent peaks.

As TRX and ETH try to recover from recent losses, something else is happening: In Tron and Ethereum, the demand for USDT, the most valuable stablecoin in the world, is rapidly decreasing.

USDT Minting Activity on Ethereum and Tron Falls From $7 to $1 Billion

Another commentator on X noted that the decline in mining activity, and thus, general blockchain usage on both networks, saw the issuance of USDT drop from 7 billion to just 1 billion in early July.

This decline, reflecting the price cut in June, points to a reduction in trading activity and a free-falling demand for cryptocurrencies at that time.

Despite Ethereum being the best, Tron is the preferred network for users who want to do USDT. Unlike the world’s first smart contracts platform, Tron is scalable and cheap to build.

Progress has been made to scale Ethereum. The rise of more than a dozen Ethereum layer-2 platforms such as Base and Arbitrum helps strengthen its position as the largest ecosystem.

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Although gas fees have been dropping over the months, developers have been making good progress in making layer-2 transactions cheaper with developments like Dencun.

With this update, users who would otherwise issue tokens like meme coins or stablecoins on Tron can choose to do so on Ethereum layer-2 solutions like Arbitrum.

USDT’s declining performance across Ethereum and Tron suggests that demand for crypto is declining. Usually, whenever there is a lot of USDT transactions, Bitcoin and crypto prices tend to go up.

Therefore, until USDT mining resumes on these top smart contract platforms, Bitcoin prices and top altcoins will likely remain depressed.

Tether Partners With Uquid, Stops Minting On EOS And Algorand

July 1, Tether they joined hands with Uquid to improve payments in the Philippines using the TON blockchain. The goal is to modernize the payment processes of Southeast Asia’s government-run Social Security System. Beyond this, the aim is to make payments more secure, faster, and more efficient.

As Tether, the issuer of USDT, attacks more partnerships, it also announced the end of USDT transactions on the Algorand and EOS networks. The issuance of USDT, however, will continue for the next year.

Although EOS and Algorand are out, USDT can be installed on more than ten platforms. CoinMarketCap says over $110 billion of the sign has it is done jointly.

Featured image from Canva, chart from TradingView