The cryptocurrency market is being shaken by a significant move. According to Circle’s announcement, the second-largest stablecoin, USD Coin (USDC), will no longer be supported on the Tron Blockchain. An announcement made earlier today stated that Circle would phase out support for USDC on Tron through a gradual transition.
USDC Leaves Tron Network
In Circle’s official statement, it was mentioned, “We are phasing out support for USDC on the TRON Blockchain. Effective immediately, we will no longer mint USDC on TRON.” As part of this decision, customers were informed that transfers of USDC to other blockchains would be supported until February 2025, while individual users and other customers outside of Circle can move their USDC to TRON through exchanges.
Circle explained this decision as part of its risk management framework, stating, “This action is consistent with our efforts to ensure that USDC remains a trusted, transparent, and secure digital dollar on the internet.”
Stablecoins and TRON
Stablecoins are a type of cryptocurrency typically pegged to a fiat currency and backed by a basket of underlying assets. USD Coin (USDC) is known as the second-largest stablecoin after Tether (USDT) with over $26 billion in token supply. However, the majority of this amount is found on the Ethereum blockchain.
Other blockchains like Solana have $1.4 billion and Polygon has $530 million in USDC. On Tron, there is a relatively smaller amount of 300 million USDC.
Following this development, the price of TRON’s token TRX was not negatively affected. The token reached a level of $0.14. Such changes between the stablecoin market and blockchains can be seen as a reflection of the constantly evolving dynamics of the cryptocurrency world.
