Circle within the scope of “risk management framework” tron Announced the removal of native USDC on its network (TRX). This decision may affect the price performance of TRX, raising concerns about the future of Tron in the market.
The company’s announcement was made on February 21, citing three main reasons, such as compatibility. Notably, this development comes less than a week after Circle’s Senior Director Caroline Hill spoke to Congress about Tether (USDT).
“Our decision to discontinue USDC support at TRON is the result of an enterprise-wide approach that includes business organization, compliance and other functions across our company. “This action is consistent with our efforts to ensure USDC remains trustworthy, transparent and secure – the characteristics that make USDC the leading regulated digital dollar on the internet.”
For this reason, Circle will immediately stop issuing USDC on the Tron network. However, it will allow its customers to migrate Tron-based USDC to other supported blockchains by February 2025. Circle currently only serves direct businesses and corporate customers. However, to transfer or exchange tokens running on Tron, retailers cryptocurrency They can use the ecosystem.
Tron (TRX) Price Analysis
Circle’s decision to stop USDC minting on Tron can be considered a serious blow to Justin Sun’s Tron blockchain initiative. In particular, Circle’s loss of trust in the Tron Network, known as the stablecoin paradise, sends a strong message to the market.
The loss of the second-largest stablecoin by market cap and volume could have a significant impact, which could impact demand on the health of Tron’s DeFi ecosystem or impact support from other institutions.
Following these developments, Tron’s native token is trading at $0.139, showing an impressive year-to-date (YTD) bull rally. However, this performance has led TRX to reach overbought territory on the daily Relative Strength Index.
With Circle’s decision to withdraw from Tron, Tron price predictions point to a correction scenario. In this case, TRX price is likely to test the psychological support level of $0.10 as investors start removing USDC from the network.
However, cryptocurrencies are unpredictable assets and the ecosystem may need to increase demand in other areas for the Tron price to find higher support. Investors should be cautious and monitor market fluctuations in the coming days.
Koinfinans.com As we know, it is also important to note Circle’s intention to offer native USDC services on promising new blockchains. Interestingly, Radix Works recently added Lindsey Lim to its board of directors. Lim was a former senior executive at Circle, which sparked rumors of a future USDC implementation of Radix (XRD).
