- USDT’s reserves on Tron accounted for more than 52% of its total circulating supply.
- USDT and Tron have gained notoriety in the past for links to terrorism.
TRX (Tron) firmly established itself as the preferred blockchain for conducting transactions with USDT, the globally popular stablecoin.
Tron and USDT: Match made in heaven?
Last week, over $110 billion in USD Tethers were moved on the Tron network, as reported by the analytics firm IntoTheBlock – this amount is over two times greater than the value of Ether [ETH] transactions settled during the same period.
The amount of USDT held in reserve on the Tron network has significantly increased over the past year, now making up over half (52%) of its entire circulating supply, according to a review by AMBCrypto utilizing information from Tronscan.
The reserves have increased by 16% since 2024 began, and nearly 26% over the year.
In a reversal, it was also noted that USDT held over 98% of the $54 billion stablecoin market capitalization attributed to Tron, based on DeFiLlama’s data.
According to IntoTheBlock’s analysis, the primary reason for the rising supply of stablecoins on the Tron network is the affordable transaction fees. This perspective is widely held among crypto industry experts.
Users have flocked to Tron due to its cost benefits for transferring USDT, making it the go-to choice among daily active users for the past year, according to AMBCrypto’s observation based on Artemas’ data. (Founded by Justin Sun)
Will past blemishes come to haunt?
While Tron’s growing USDT reserves were praiseworthy, there have been blowbacks.
Last year, the network gained notoriety amongst terrorist groups as their preferred choice for transferring cryptocurrencies to finance their activities during the Israel-Gaza conflict.
Israeli security forces confiscated digital wallets associated with terrorist organizations and obtained the stored USDT funds.
The disclosure mentioned earlier could have influenced the decision to stop USDC, the second largest stablecoin on the network, although there was no definitive proof for this.
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2024-04-12 10:15