Altcoin
Ethereum outdone! Tron’s $110B USDT transfer sets new highs as…
Low fee was the major driver behind users flocking to Tron over Ethereum for USDT transfers.
- USDT’s reserves on Tron accounted for more than 52% of its total circulating supply.
- USDT and Tron have gained notoriety in the past for links to terrorism.
Tron [TRX] solidified its position as the most sought-after chain for transacting USDT, the world’s largest stablecoin.
Tron and USDT: Match made in heaven?
According to on-chain analytics firm IntoTheBlock, USDTs worth a whopping $110 billion were transferred on Tron last week, more than twice of what was settled on Ethereum [ETH].
Source: IntoTheBlock
USDT reserves on Tron have expanded sharply in the last year, accounting for more than 52% of its total circulating supply as of this writing, AMBCrypto examined using data from Tronscan.
The reserves have increased by 16% since 2024 began, and nearly 26% over the year.
Source: Tronscan
The dominance was observed in the other way round as well. USDT accounted for more than 98% of Tron’s total stablecoin market cap of $54 billion, according to DeFiLlama.
IntoTheBlock cited low network fees as the major driver behind the stablecoin’s increasing supply on Tron network, a view shared by most observers in the crypto space.
Tron’s cost advantages in transferring USDT have attracted users in hordes. The Justin Sun-founded chain has remained the undisputed leader in daily active users over the last year, AMBCrypto noticed using Artemis’ data.
Source: Artemis
Will past blemishes come to haunt?
While Tron’s growing USDT reserves were praiseworthy, there have been blowbacks.
The network came in the eye of the storm last year when it emerged as most favored crypto transfer network by terrorist organizations to fund their operations during the Israel-Gaza war.
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Israeli counter terror agencies cracked down on wallets linked to such groups and seized funds, most of which were in USDT.
While there was no direct evidence to suggest this, the aforementioned revelation might have had a bearing on the discontinuation of USDC, the second-largest stablecoin, on the network.
