- TRON is catching up to Ethereum with 1.8 million USDT token holders on its blockchain.
- The TRON blockchain has become a viable option for people due to the high transaction fees on Ethereum.
Unlike regular cryptocurrencies, stablecoins give users all the benefits of blockchain technology, but with a safe, non-volatile asset. TRON’s blockchain is at the forefront of this trend, hosting over $8.5 billion USDT on its platform. Considering there is $37.5 billion stored within the entirety of the stablecoin ecosystem, TRON’s growing user base of 1.8 million is a significant contributor to widespread stablecoin adoption.
The rise and rise of stables
Countries all over the world are faced with social, political, and economic turmoil that has rendered their banking systems useless to a majority of the citizenry. From Myanmar to Lebanon, people have had to wait hours or sometimes days in line to try and withdraw their savings, only to learn it’s no longer possible. With many looking for a new system but weary of holding their savings in volatile assets like Bitcoin, stablecoins become a viable option. Tokens like USDT, which are one-to-one pegged to the US dollar, can provide a savings mechanism to anyone with internet access, returning the monetary power held by governments back to the people.
There are about 35 established stablecoins to choose from with various asset backings. USDT has established itself as the king, with almost half of the total stablecoin value stored within its network. Tether is also the most used cryptocurrency by daily trading volume, regularly facilitating over $100 billion in volume, significantly higher than even Bitcoin or Ether. USDT is an essential tool that enables people to protect and store their value, and is also used for routing capital between exchanges and crypto on- and off-ramps.
USDT runs on the Ethereum blockchain and has 2.4 million token holders, making TRON’s 1.8 million USDT token holders an impressive amount. When considering the disparity in market capitalization between the two platforms, the close proximity in USDT users on both networks shows the scaling capabilities that TRON can enable. Ethereum has a $190 billion market cap compared to TRON’s almost $2.5 billion, yet TRON has 75 percent of the USDT holders that are on Ethereum.
With users feeling the full force of high transaction fees on Ethereum, TRON has become a more viable option for people who want to store and send their USDT regularly. Ethereum’s congested blocks and spiraling fees point to why more users are fleeing to platforms like TRON that are better equipped to support high transaction volume.