USDT on Tron Network Outpaces Visa with $53 Billion Volume
  • Tether’s USDT market dominance, driven by mass adoption on the Tron (TRX) network, threatens to unseat Visa in global digital payments.
  • The notable adoption of USDT on the Tron network has bolstered TRX price volatility amid the ongoing cryptocurrency correction led by Bitcoin (BTC).

The Tron (TRX) network, a top-tier Layer 1 blockchain that supports multi-chain Web3 development, has seen a rise in stablecoin activity recently. Notably, the Tron network has surpassed Visa Inc. (NYSE: V) in daily trading volume.

Using Tether USDT TRON Network It has increased underlying on-chain activity to approximately $53 billion, surpassing Visa’s $42 billion transaction volume in Q1 2024. Notably, the number of daily new accounts on the Tron network recently surpassed 319,000, causing TRC20-USDT’s circulating supply to exceed $59 billion on June 15, 2024.

A vibrant Web3 ecosystem on the TRON network

The Tron network has grown into a vibrant Web3 ecosystem, second only to Ethereum (ETH). According to the latest Web3 data, the total locked value (TVL) of the Tron network is approximately $7.644 billion, with the stablecoin market cap exceeding $58 billion.

Some of the top Web3 projects leveraging the Tron network include JustLend lending protocol, JustStables CDP, SUN DEX, Bridgers DEX, etc. Notably, the Tron network supports multi-chain Web3 development to enhance seamless adoption of digital assets.

Crypto News Flash recently reported that the number of accounts on the Tron network has already surpassed 216 million, backed by the Tether USDT stablecoin.

Regulatory Hurdles

The TRON network is facing significant regulatory headwinds from the United States, primarily due to the high adoption rate of USD-backed stablecoins. Additionally, the US government is seeking to restrict the use of its currency around the world, especially in countries subject to sanctions.

Earlier this year, CryptoNewsFlash reports: Binance, the top cryptocurrency exchange by daily trading volume and registered users, has stopped supporting Circle’s USDC stablecoin on its Tron network.

Mid-last year, the US Treasury Department and the United Nations expressed concern that ISIS-supporting groups were using Tether’s USDT on the TRON network for money laundering and terrorist financing.

The ongoing attacks on the Tron network have severely hindered mass adoption of stablecoins by institutional investors, especially from the United States and its allies.

Impact on TRX price fluctuations

Despite the ongoing crypto market correction, TRX has been gradually increasing in value against the US dollar thus far. With a fully diluted valuation of around $10 billion and average daily trading volume of around $413 million, the large altcoin has risen by more than 64% over the past year, trading at around 12 cents as of Tuesday, June 25, 2024.

TRX price against Bitcoin has already formed a macro double bottom at multi-year support levels, which could lead to a significant upside against the U.S. Dollar. Furthermore, the TRX coin has a huge number of use cases in addition to high liquidity that allows for seamless trading and adoption.

TRX’s weekly price has seen the Relative Strength Index (RSI) recover to the 50% level, indicating that selling pressure is easing. If the outlook is more bullish, TRX’s price could aim for all-time highs, similar to those recorded by BNB recently.

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