“Tron's rising dominance in stablecoin transactions is a surprising yet strategic move that could potentially shift the blockchain landscape, especially in emerging markets.”
Emerging markets have given Tron a leg up in becoming a key player for stablecoin transactions.
Matias, an Argentine shopkeeper, reflects a wider trend where most of his customers opt for USDT on Tron. Think of stablecoins like USDT as digital versions of real-world currencies, kept stable by assets like the U.S. Dollar.
"Roughly 95% of my customers chose USDT on Tron as the form of payment,"
said Matias. He credits Tron's quick transaction speeds and low fees for its rising status.
Worldwide searches on Google for “USDT Tron”
Tron isn't just a hit in Argentina. It's gaining traction globally, particularly in countries like Nigeria, Côte d'Ivoire, and Pakistan.
Searches for “USDT Ethereum” (red) vs "USDT Tron" (blue)
If you were to compare Google searches, "USDT Tron" is gaining steam. "USDT Ethereum," on the other hand, is losing interest, despite Ethereum's market capitalisation being 26 times that of Tron.
Stablecoin Activity by Chain
A recent study by hedge fund Brevan Howard highlighted Tron's lead in this area, boasting over 2.4 million active addresses dealing with stablecoins.
Let's say Tron is a bustling marketplace and these addresses are the individual stalls. More stalls mean more activity, and in Tron's case, that activity is in fiat-backed stablecoins like USDT.
The median transaction value of USDT on Tron ranges between $100 and $300. The numbers indicate that it's not just the wealthy using the network but a broader range of people.
Image: UnbankedHQ
Several elements contribute to this trend. Imagine a series of bridges connecting islands. The more bridges (or factors) you have, the easier it is to travel (or transact).
BitGo, a well-known cryptocurrency custodian, backs TRC20 tokens, which has led to an influx of users on the Tron network.
Telegram, a messaging app, also supports sending TRC20-based USDT, making it more user-friendly.
A Succesful Tron Transaction
Moreover, Tron's low transaction fees and speedy operations make it a favourable option for users, much like a toll-free, fast-speed motorway would be for drivers.
Image: bitget
But getting hold of USD isn't always easy. Here, USDT on Tron becomes a convenient alternative, like opting for a digital ticket when paper ones are hard to find.
Justin Sun, Tron's founder, underlined the importance of having USDT on his network as it aids in efficient Bitcoin transactions and aligns with Tether's aims.
So, while many have touted blockchain technology for its potential to financially include those who are excluded, it seems Tron is the dark horse making strides in this direction.
Coinlive is dedicated to delivering impartial, clear-cut journalism. While this article strives for timely accuracy, we recommend that readers independently fact-check and seek professional advice before taking any action based on this material.
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