Despite pumping at spot rates, Tron could not escape the wrath of bears after peaking in February. Like other altcoins such as Solana and Ethereum, whose prices hit 2024 highs in March, Tron remained in the red in the last month of trading and is yet to surpass the recent peaks.
As TRX and ETH attempt to pare recent losses, something else is also happening: on Tron and Ethereum, demand for USDT, the world’s most valuable stablecoin, is falling rapidly.
USDT mining activity on Ethereum and Tron drops from $7 to $1 billion
An analyst at X noted A drop in mining activity, and thus, in general blockchain usage across both networks, has seen USDT issuance drop from 7 billion at the beginning of July to just 1 billion.
This decline, which mirrors the price contraction in June, points to a decrease in trading activity during that period and a continued drop in demand for cryptocurrencies.
Despite Ethereum's dominance, Tron is a favorite network for users looking to mine USDT. Unlike the world's first smart contract platform, Tron is scalable and cheap to transact on.
Progress has been made to scale Ethereum. The emergence of over a dozen Ethereum layer-2 platforms such as Base and Arbitrum has solidified its position as the largest ecosystem.
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Although gas fees have been declining over the past few months, developers are making good progress in making layer-2 transactions cheaper through upgrades like Denken.
Through this update, users who would otherwise mint tokens such as meme coins or stablecoins on Tron can opt to do so on Ethereum layer-2 solutions such as Arbitrum.
The drop in USDT mining in Ethereum and Tron suggests that demand for crypto is declining. Usually, whenever there is bulk mining of USDT, Bitcoin and crypto prices rise.
Therefore, until USDT mining activity resumes in these top smart contract platforms, the prices of Bitcoin and top altcoins will likely remain suppressed.
Tether partners with Uquid, stops mining on EOS and Algorand
On July 1, Tether shook hands Uquid has partnered with the Philippines to enhance payments using the TON blockchain. The goal is to modernize payment processes for Southeast Asia’s government social security systemFurthermore, it aims to make payments more secure, faster and efficient.
Even though USDT issuing company Tether is making more partnerships, announced the Cessation of USDT mining on Algorand and EOS networks. However, USDT redemption will continue until next year.
Although EOS and Algorand are out, USDT can be mined on over ten platforms. They say Over $110 billion of tokens Cumulatively minted,
Feature image from Canva, chart from TradingView
