The Tron network’s stablecoin market is witnessing a clear leader. USDT has established itself as the primary asset for value transfers and trading.
In fact, CryptoQuant’s latest analysis revealed the overwhelming dominance of USDT on the Tron network, which accounts for 98.5% of the total stablecoin supply.
USDT’s Market Share on Tron
With a circulating supply of $62.76 billion out of nearly $64 billion in stablecoins on the network, USDT has established itself as the cornerstone of Tron’s stablecoin ecosystem. Competing stablecoins hold only marginal shares, with USDC representing 0.06%, USDD at 1.15%, TUSD at 0.26%, and USDJ making up just 0.01% of the supply, as per the on-chain analytic platform’s findings.
Notably, the supply of other stablecoins has remained stagnant since March 2024. The same cannot be said for USDT which continued to expand while solidifying its market dominance. Beyond supply, USDT also plays a crucial role in Tron’s liquidity.
Its daily on-chain volume from centralized exchanges ranges between $4 billion and $5 billion, spiking during periods of high TRX price volatility. This indicates that USDT not only dominates the network’s stablecoin supply but also serves as a critical pillar for trading activity and value transfers across the Tron blockchain.
Data from IntoTheBlock further revealed that the Tron network currently processes over 14 million USDT transactions per week, which represents 69% of all USDT activity. This figure is a notable increase from 61% in late January.
Zero-Fee USDT Transactions on Tron
Tether’s USDT stablecoin is set to introduce commission-free transactions on the Tron blockchain, according to Tron founder Justin Sun’s recent post on X. The Gas Free feature will allow USDT transfers without requiring TRX tokens for gas fees, making transactions more accessible. Sun invited wallets and projects to integrate the feature through JustLend, which happens to be Tron’s official lending platform.
Tron has been known for its low-cost USDT transfers compared to Ethereum, but recent data shows it has become one of the most expensive networks for USDT, with gas fees ranging between $3.06 and $6.22 – significantly higher than Ethereum’s $0.14 fees. As such, the new Gas Free feature aims to restore Tron’s position as a cost-effective stablecoin network by eliminating the need for users to hold TRX for transactions.
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