One of the most silent yet profound shifts in the crypto ecosystem is the migration of tokenized dollars to a new infrastructure: the Tron network. While Ethereum remains the epicenter of smart contract innovation and DeFi, Tron has become the operational backbone of USDT (Tether) globally.
Since October 2021, Tron has steadily gained ground on Ethereum in terms of USDT issuance and circulating supply. This structural difference is not anecdotal—it reflects a sustained adoption of Tron as the preferred network for USDT value transfers.
Why is Tron consistently outperforming Ethereum with USDT?
Tron offers near-zero fees and instant confirmations, making it the standard for transferring money in countries like Venezuela, Turkey, Nigeria, and Argentina. In these markets—where dollar stability is crucial—TRC-20 USDT functions as an alternative banking system, accessible from a mobile device.
Major centralized exchanges also prioritize TRC-20 withdrawals and deposits due to its efficiency and low cost. This choice has triggered a structural migration of USDT supply toward Tron, reinforcing its dominance.
From an On-Chain view, this concentration means daily liquidity has shifted away from Ethereum toward Tron. While Ethereum still leads in advanced DeFi, the digital dollar base now flows mostly through Tron.
Asia plays a key role in this trend. Tron is now the leading network for USDT adoption and volume across Asian markets, driven by its low-cost infrastructure for large transfers. This regional dynamic enhances its global relevance.
The “TRC-20 USDT vs ERC-20 USDT” metric (see chart) clearly illustrates this shift. It’s not a temporary anomaly but a persistent trend since 2021. On June 29, $6.949M was moved on Tron, compared to just $1.312M on Ethereum. This means USDT volume on Tron was about 5.29 times higher than on Ethereum that day—a difference showing a consistent daily gap between both networks
by Carmelo Alemán Verified On-Chain Analyst at Cryptoquant
Written by Carmelo_Alemán
