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Is TRON now the Future of Stablecoin
Tether, a Stablecoin, is somewhat shooting up on TRON since the last week of December 2020. Now, TRON has more than $6.6 billion worth of Tether, and more than 400k USDT transactions are being done on TRON every day. Although Tether is available on various platforms, including EOS, Ethereum, Algorand, TRON, and Liquid, TRON is rapidly growing as a blockchain to issue USDT.
Talking about the trend of USDT issued on TRON, in 2020, the amount was increased from $1 Billion to $6.6 billion, and slowly TRON is competing Ethereum for USDT. In January 2021, we can see that TRON has more tether transactions compared to Ethereum. On Ethereum, Tether transactions are more or less steady, while on TRON, it is growing at a continuous rate since the start of the year.
If we try to analyze the reason for this explosion on TRON, it might be due to the high transaction fee on Ethereum compared to TRON. Although users have an alternative to use Tether on Algorand, EOS, and Liquid network, the platform's use depends upon its usability, low fee, and network effects. While the small transactions of Tether are majorly migrating towards TRON, the larger transactions are still done by Ethereum. After the Ethereum update launch, it might be interesting to see if it can still retain a crucial role for Tether.
Justin Sun, the TRON Foundation Founder, seems all excited about the tether explosion on TRON.
The market chooses #TRON for obvious reasons: fast, cheap & scalable, battle tested w/ $9.3+ billion mcap in TRC-USDT thru 1.6+m addresses! Also there're 15k TRC-BTC, 20k TRC-ETH, $WBTC, $WETH on #TRON, and $WLTC TRC-AMPL & many more incoming.
Justin Sun (@justinsuntron) January 20, 2021
After seeing its trend, we can predict that TRON will soon become the number one blockchain for Stablecoin by the end of this year.