- Tron’s USDC market cap has shrunk by 72% in the past year.
- TRX was unaffected, gaining 2.56% over the past 24 hours.
In a major development, stablecoin issuer Circle announced the discontinuation of its USDC coin on the Tron [TRX] blockchain.
Effective immediately, USDC generation on the network would cease, the company said in a statement blog post.
While the issuer would help its institutional clients move their USDCs to other blockchains until February 2025, retail and non-Circle clients were asked to move their holdings out of TRON using exchanges and other services.
Circle said the move was in line with its risk management framework, intended to keep USDC “trusted, transparent and secure.”
Tron’s native token TRX appeared to have pushed development aside, gaining 2.56% in the 24-hour period at the time of writing, according to CoinMarketCap.
The weakening bond
USDC was the second largest stablecoin at the time of writing, with a market valuation of over $26 billion, according to AMBCrypto’s analysis of DeFiLlama facts.
However, approximately $313 million, or 1.17% of this offering, is listed on Justin Sun-owned Tron. In fact, Tron’s USDC market cap has shrunk by 72% in the past year.
Source: DeFiLlama
While much of it can be attributed to last year’s banking crisis in March, which led to a broader market decline for USDC, recent data isn’t inspiring much optimism either.
USDC supply on Tron fell 16% last week and more than 6% month-over-month. At the same time, the stablecoin’s preference for other chains increased.
Solana [SOL] saw a 31% increase in USDC supply over the past month, making it the most dominant stablecoin on the network.
How much are 1,10,100 TRXs worth today?
Tron’s growing problems
The Tron blockchain and its founder Justin Sun have received a lot of criticism over the past year.
After being sued by US regulators, allegations of irregularities on Sun-controlled platforms dominated headlines last year.
One of the biggest blows to Tron’s ecosystem came when it was labeled as the crypto network of choice for terror financing during the war between Israel and Hamas.