Key Points
- Over 52% of USDT’s total circulating supply is held on Tron.
- USDT transactions on Tron last week surpassed $110 billion, outpacing Ethereum.
Tron [TRX] has emerged as the preferred blockchain for transacting USDT, the world’s largest stablecoin.
USDT’s Strong Presence on Tron
Data from IntoTheBlock, an on-chain analytics firm, revealed that Tron facilitated USDT transactions worth an impressive $110 billion last week. This figure is more than double the amount transacted on Ethereum (ETH).
Over the past year, USDT reserves on Tron have seen a significant increase. They now represent over 52% of the stablecoin’s total circulating supply. Since the start of 2024, these reserves have grown by 16%, and by nearly 26% over the past year.
USDT also dominates Tron’s total stablecoin market cap, making up more than 98% of the $54 billion total, as per DeFiLlama.
Why Tron?
Many attribute the surge in USDT’s supply on Tron to the network’s low fees. This cost advantage has led to a substantial increase in the number of users transacting USDT on Tron.
However, Tron’s popularity has also brought some negative attention. Last year, it was reported that terrorist organizations were using the network to fund their operations during the Israel-Gaza war.
Israeli counter-terrorism agencies subsequently targeted wallets associated with these groups, seizing funds, many of which were in USDT.
Although there was no direct proof, some speculate that this incident may have influenced the decision to discontinue USDC, the second-largest stablecoin, on the network.
