Tether remains the most popular stablecoin, as it is issued on multiple blockchains. In the beginning, many people wondered if USDT on Tron’s blockchain would be successful. Today, there are over 6.1 billion tokens held by 1.42 million users.
USDT on TRON is a Success
It is remarkable to see how many USDT tokens can be found across the different supported blockchains. Most traders know it exists on Ethereum’s chain, but Tron is also supported. Although this latter ecosystem doesn’t get too much attention, no one can deny the issuance of USDT has been incredibly successful.
— Justin Sun🌞 (@justinsuntron) December 3, 2020
New statistics confirm there are 6.1 billion USDT tokens on the Tron blockchain. More importantly, there are 1.42 million addresses owning this token as of right now. That equates to roughly 4,500 TRC-20 USDT per address. The vast majority of these tokens reside in exchange wallets, however, which is only to be expected for a stablecoin.
Delving deeper into the statistics, the TetherToken contract currently holds over 382,700 TRX or more than $12 million in normal currency. That in itself is significant, but there’s more. In addition to the TRX balance, the contract also holds several tokens created on the Tron blockchain.
As is to be expected, the most valuable asset held by this contract is USDT itself. Although it is just over $6,122 worth of Tether’s token, it is still a small reserve to take into account. Other tokens held include Wrapped BTT, regular BTT, WIN, SEED, HORA, KLV, JST, and USDJ. It will always be odd to see a stablecoin-related smart contract hold a different stablecoin in its balance sheet.
Often Cheaper Compared to Ethereum
There is one clear reason why USDT on Tron is gaining momentum. It is far cheaper to use compared to USDT on Ethereum’s blockchain. Especially when the Ethereum chain suffers from congestion, the fee to move this stablecoin can quickly hit double digits. On the Tron blockchain, that is nearly unheard of.
Additionally, various exchanges now accept USDT deposits through all of the different chains with ease. This promotes the use of the cheapest alternative available. Not having to worry about transaction fees is crucial, especially when sending smaller amounts of USDT to someone else. Tron seems to check the right boxes in that regard, for now.
Competition between different blockchains is a positive sign. It benefits the projects using these chains – in this case, Tether – as well as those who interact with the underpinning asset. It seems plausible to assume the popularity of USDT will not diminish anytime soon. The bigger question is whether a stablecoin like USDC will ever be issued on the Tron blockchain as well.