The TRON network has recently grabbed headlines in the cryptocurrency ecosystem following a sequence of significant events. Highlighted was an announcement pertaining to Bitcoin Layer-2 support, touted as a vital development by TRONâs founder, Justin Sun. Additionally, the market was rocked by a pivotal announcement regarding the suspension of USD Coin (USDC) operations on the TRON blockchain.
TRONâs Striking Revenue Increase
On February 20th, TRONâs daily network revenue skyrocketed to a record $2 million. Concurrently, stablecoin giant Circle declared its decision to cease USDC offerings on the TRON blockchain. Revenue on TRON primarily stems from the destruction of TRX tokens used to pay transaction fees on the network. Reports from Tronscan indicate that 13 million TRX tokens were burnt that day, reducing the total supply.
Circle Alters USDC Strategy on TRON
The following day, Circle announced an intent to discontinue its USDC-related activities on TRON. Circleâs strategy aims to uphold USDCâs status as the second-largest stablecoin by market cap, focusing on ensuring its reliability and security. This move comes amidst a broader landscape shift within the TRON ecosystem.
Recent Tronscan data also points to a surge in daily active addresses on the TRON network, with a notable 8% increase in active accounts executing at least one transaction after Circleâs decision. However, there was a concomitant 3% dip in new wallet and contract account activities since February 20th.
Despite the increase in active users, the TRX token price experienced a slight downturn in the past 24 hours. This decrease in token value coincided with a general market trend, including a 1.31% fall in Bitcoinâs price. Nonetheless, TRXâs slight 1% decrease suggests it may be weathering market conditions more robustly thanThis year, TRON delivered an impressive recovery from the lows it suffered in 2023. TRON has been competing with top altcoins, logging 15 bullish days in January. This performance boosted its market cap to over $9.2 billion, ranking it the 10th largest cryptocurrency. TRON recently introduced the USDD algorithmic stablecoin to its decentralized social media blockchain, boosting bullish sentiment for it.
Januaryâs bullish momentum sent the price of TRX surging by over 40%, and the token is targeting its ATH of $0.30. Despite rumors that TRON might be getting a regulatory clampdown, the next market-wide bull run could send TRON above its 2021 high of $0.18. After that, a short-term bearish correction could hit higher highs soon so buying in low and holding it for long term will be more profitable đ€đ°đ€đđ
