Thanks to several impressive achievements, the TRON network continues to assert its dominance in the stablecoin payment sector. Recently, the circulating volume of USDT (Tether) on TRON reached a new all-time high.
Meanwhile, the number of long-term holders on TRON has surpassed 2.66 million addresses. This reflects strong confidence from retail investors and their long-term commitment to this level-1 blockchain.
Could the volume of USDT on TRON surpass Ethereum?
Data from CryptoQuant shows that USDT reserves on TRON have steadily increased over the past years. Currently, the market capitalization of USDT on TRON has reached a record level, with over $71 billion USDT in circulation.
Meanwhile, Ethereum has $74.5 billion USDT in circulation. TRON is closing the gap with ETH in USDT usage by traders. For context, the total market capitalization of stablecoins is $242 billion, and Tether (USDT) alone accounts for $149 billion. This means that TRON facilitates smooth transactions for 29% of the stablecoin market capitalization and 47% of the USDT market capitalization.
Additionally, data from Artemis shows that TRON accounts for 28% of all active stablecoin addresses, more than any other tracked blockchain. This makes TRON the leading blockchain by revenue from fees. A recent report from BeInCrypto indicates that experts predict stablecoins will attract significant venture capital interest in the future. The number of issuers may increase tenfold. New issuers may choose TRON, which would be beneficial for a blockchain capable of processing $150 billion in weekly stablecoin transaction volume.
Tron (TRX) is supported by dedicated long-term investors
CryptoQuant also reports that 2.66 million TRX addresses have held their tokens for over a year without spending them. These wallets maintain balances of at least 10 TRX. While 10 TRX is worth only a few dollars, many retail investors choose to hold TRON long-term, even with small amounts of capital.
Analyst Crazzyblockk believes that this figure indicates strong user loyalty and sustained engagement, which may support the price of TRX in the long term. However, some investors argue that TRON's viability is too heavily dependent on USDT transactions. Data from Dune shows that over 3 million TRON wallets are active daily, but most of them only transact with USDT. Therefore, any strategic changes in the TRON-Tether relationship could significantly impact the network and the price of TRX.
This dependency highlights TRON's weak utility outside the USDT space. For example, TRON significantly lags behind Solana in the deployment of meme coins and substantially trails other chains in trading volume on decentralized exchanges (DEX). Moreover, TRON is nearly absent in the market for real-world asset (RWA) shares. At the time of writing, TRX is trading at approximately $0.25, showing minor changes after falling from a peak of $0.45 at the end of last year.
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