Binance Announces End of USDC Support on Tron Network

• Binance has announced that its customers have until April 5 to transfer their USDC coins from Tron’s TRC20 to other supported versions.
• The Tron ecosystem remains the second largest web3 ecosystem after Ethereum with over $9.8 billion in TVL and more than $53 billion in stablecoins market cap

Binance Holdings, the leading cryptocurrency by globally registered users and Bitcoin holdings, has announced that it will cease support for Circle’s USDC TRC20 by April 5, 2024. As a result, Binance users have until next week Friday to convert all their USDC TRC20 tokens to other supported networks or migrate to other exchanges in the meantime.

As Crypto News Flash previously reported, Circle Internet Financial has set until February 25 for its customers to cut ties with USDC TRC20. Worth noting that Circle’s USDC is available on several blockchains including Stellar (XLM), Solana (SOL), and Ethereum (ETH), among others.

Following Circle’s discontinuation of USDC support on the Tron network (TRC20), Binance will cease support for USDC deposits and withdrawals via TRC20 starting from 5 April 2024, 02:00 am UTC.

Users may continue trading USDC on Binance. Deposits and withdrawals of USDC via other…

— Binance (@binance) March 25, 2024

Impact on Tron Web3 Ecosystem

The Tron ecosystem remains the second largest web3 ecosystem with nearly $10 billion in Total Value Locked (TVL) and around $53 billion in stablecoins market cap. The Tron network is currently the leading minting ecosystem for Tether’s USDT, thus playing a crucial role in enabling mass adoption of TRX-based web3 products. 

However, the end support of the USDC-TRC20 is a major blow to the Tron-based web3 products as regulatory hurdles remain major headwinds. As Crypto News Flash reported, Tron’s founder Justin Sun, and his companies including BitTorrent (BTT) are being investigated by the US SEC for violating securities laws and fraud charges.

The historical settlement between the United States government and the Binance exchange last year possibly painted a picture of how Justin Sun and his companies might be impacted. 

“Sun and his companies not only targeted U.S. investors in their unregistered offers and sales, generating millions in illegal proceeds at the expense of investors, but they also coordinated wash trading on an unregistered trading platform to create the misleading appearance of active trading in TRX. Sun further induced investors to purchase TRX and BTT by orchestrating a promotional campaign in which he and his celebrity promoters hid the fact that the celebrities were paid for their tweets,” the US SEC Chair Gary Gensler noted.

Nonetheless, the Tron ecosystem is well positioned for further growth in the coming years bolstered by the tangible adoption of digital assets all over the world. As Crypto News Flash recently noted, the Tron network achieved a major milestone of surpassing 216 million non-zero accounts.

TRX Price Expectations

Amid the ongoing macro crypto bullish outlook, Tron’s TRX price has retested its all-time high and is now aiming for the parabolic rally to a new ATH. The mid-cap altcoin, with a fully diluted valuation of about $10.4 billion and a reported daily trading volume of about $400 million, has dropped about 14 percent in the past four weeks to trade around $0.118 on Monday.

From a technical perspective, the TRX price is undergoing the last major correction before possibly rallying above $1 for the first time. Moreover, the altcoin has formed a cup with a handle base pattern that often precedes major uproar in the subsequent months.