Circle announced the removal of native USDC on the Tron (TRX) Price as part of its risk management framework. This raised concerns about Tron’s future in the market, which could impact TRX’s price performance.
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Tron Price Predictions after USDC Removal from the Network
The company published the announcement on February 21, mentioning compliance as one of the three reasons for the decision. It happened less than a week after Circle’s Senior Director, Caroline Hill, spoke in Congress about Tether (USDT).
“Our decision to discontinue support for USDC on TRON is the result of an enterprise-wide approach that involved the business organization, compliance, and other functions across our company. This action aligns with our efforts to ensure that USDC remains trusted, transparent, and safe – characteristics that make it the leading regulated digital dollar on the internet.”
Therefore, Circle will effective immediately halt USDC minting on Tron.
However, it will allow its customers to migrate Tron-based USDC to other supported blockchains until February 2025.
1/ We are discontinuing USDC on the TRON blockchain in a phased transition. Effective immediately, we will no longer mint USDC on TRON. Transfers and redemptions of USDC on TRON will continue to operate normally through February 2025. Read the details: https://t.co/kw9A3ZUpWH
— Circle (@circle) February 21, 2024
On that note, Circle only directly serves businesses and institutional customers. Retail can use the cryptocurrency ecosystem to transfer or exchange tokens currently running on Tron.
Tron (TRX) price analysis
This decision can prove itself to be a tough hit against Justin Sun’s blockchain enterprise, Tron. In particular, Circle sends a strong message to the market about their trust in the Tron Network, a stablecoins’ paradise.
Losing the second-largest stablecoin by market cap and volume could affect the demand for TRX, Tron’s DeFi ecosystem health, or influence the support of other institutions.
Meanwhile, Tron’s native token is trading at $0.139 by press time, in an impressive bull rally year-to-date (YTD). On the other hand, such a performance has made TRX reach an overbought status in its daily Relative Strength Index.
Tron’s Price Forecast
Tron’s price forecast sets a likely scenario of a price correction, fueled by recent news related to Circle’s decision to abandon Tron. In this context, TRX price may test the $0.10 psychological support as investors start migrating USDC from the network.
Nevertheless, cryptocurrencies are unpredictable assets, and Tron’s price could find higher support if its ecosystem manages to find relevant demand on other fronts. Investors must be cautious in the following days and expect volatility.
Conclusion
To conclude, Circle’s removal of native USDC from the Tron Network has raised concerns about Tron’s future and its impact on TRX’s price performance. The decision could lead to a price correction for TRX, potentially testing the $0.10 support level, but the cryptocurrency market’s unpredictability suggests caution and preparedness for volatility in the coming days.
Note: It’s a research based article not a financial advice
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