Tron (TRX) has strengthened its position as the leading chain for USDT transactions, surpassing Ethereum (ETH) in recent activity.
According to data from on-chain analytics firm IntoTheBlock, a staggering $110 billion worth of USDT was transferred on the Tron network last week, more than double the volume settled on Ethereum.
The rise in USDT reserves on Tron has been remarkable, with over 52% of the total circulating supply now residing on the platform. These reserves have seen a 16% increase since the beginning of 2024 and a nearly 26% surge over the past year.
Conversely, USDT accounts for over 98% of Tron’s total stablecoin market cap of $54 billion.
The allure of low network fees on Tron has been cited as a significant factor driving the increasing supply of USDT on the network, a sentiment echoed by many within the crypto community.
Tron’s cost advantages in USDT transfers have attracted a considerable influx of users, leading to its status as the unrivaled leader in daily active users over the past year.
While Tron’s expanding USDT reserves have garnered praise, there have also been criticisms. The network faced scrutiny last year when it was revealed to be a favored crypto transfer network for terrorist organizations during the Israel-Gaza conflict.
Israeli counter-terrorism agencies intervened, targeting wallets associated with such groups and seizing funds, the majority of which were in USDT. Although there was no direct evidence linking Tron to these activities, this revelation may have influenced the discontinuation of USDC, the second-largest stablecoin, on the network.
