Binance has declared its decision to halt the support for USD Coin (USDC) transactions via the TRON network’s TRC-20 standard. This change will take effect from April 5, 2024, at 02:00 UTC. Users of Binance will need to note that the platform’s ability to handle deposits and withdrawals of USDC will be unavailable through the TRON network following this date.
This move aligns with the announcement from Circle, the issuer of USDC, regarding its plan to phase out the token’s support on the TRON network by February 2025. Circle aims to maintain the trust, transparency, and security of USDC through this strategic withdrawal. The focus remains on other networks that support USDC transactions, such as Ethereum, which Binance confirms will continue without interruption.
Impact on the Crypto Ecosystem
An analysis reveals that the TRON network currently holds over $172 million in USDC liquidity. This accounts for a minor 0.54% of USDC’s total circulating supply. Interestingly, this figure is higher than the liquidity found on other networks like Polygon and Optimism, which hold $168 million and $118 million, respectively.
Binance’s stake in USDC on the TRON network stands at about $1.7 million, a relatively small fraction (0.01%) of its total token allocations on this network. The bulk of Binance’s TRC-20 investments are in Tether (USDT), with a staggering 98.2% of its TRON network holdings, totaling over $13.5 billion.
This strategic shift by Binance and Circle underscores the dynamic nature of the cryptocurrency landscape. It highlights the continuous effort by leading entities to adapt to changes and maintain a secure and trustworthy environment for users. For Binance users, this announcement signals a need to adjust their transaction methods for USDC, ensuring they utilize other supported networks like Ethereum for their operations.