Tether’s USDT stablecoin has proven to be of great value to cryptocurrency enthusiasts worldwide. For Tether, this has allowed the company to issue this currency on multiple blockchains. Current issuance of USDT on TRON seems to be catching up to Ethereum rather quickly.
USDT on TRON is Booming
A lot of people were surprised when Tether began issuing USDT on TRON. Although it makes sense to explore different blockchains and leverage their native properties, TRON wasn’t necessarily in anyone’s top five list. Even so, there must be a few good reasons as to why this decision was made at the time. Launching in April of 2019, there has been instant interest in exploring the stablecoin on this blockchain.
A good sign, as it shows Tether’s decision was the correct one. Ever since that time, the supply of USDT on TRON has continued to grow by leaps and bounds. Not that anyone expected anything else, but this rate of growth cannot be denied either. Compared to USDT on Ethereum, there will be a point where TRON surpasses the other chain. The gap between both ecosystems has shrunk significantly.
This needs to be put in its proper perspective, however, Ethereum still has nearly twice the USDT supply of TRON. However, the USDT on TRON supply has grown from $786.39 million to $4.5 billion in a span of less than five months. This clearly illustrates there is a growing demand for TRC-20 USDT.
Considering how Tether’s market cap has kept growing as well, the extra liquidity has to be issued somewhere. It appears that TRON is getting more of that volume than Ethereum in recent months.
Growing DeFi Ecosystem and Support
Several factors contribute to the ongoing growth of USDT on TRON. First of all, there are dozens of exchanges supporting the TRC-20 tokenized version of Tether’s stablecoin. This list includes names like Poloniex, Bitfinex, Binance, OKEx, BiKi, and many more. Without the help of these partners supporting this liquidity, the issuance of USDT on TRON’s blockchain would not have seen such stellar growth in recent months.
Second, TRON is currently building its decentralized finance ecosystem. Several initiatives have launched and will launch in the near future. One of the supported assets to provide liquidity is TRC-20 USDT. Given its stable value, that is a preferable option compared to other assets. In DeFi, yield farming through stablecoins is often the safe bet, even if overall rewards are a bit lower.