Making Sense of Tether on Tron
AI summary of the linked articleTether's USDT on the Tron blockchain has become the most used cryptocurrency for payments, according to the article, which attributes its rise to stablecoin demand in high-inflation countries and to Binance's early support. Stablecoins grew from under $3B to over $125B in circulation over five years, and the article says stablecoin transaction volumes fell only 11% after late 2021 while centralized exchange volumes fell 64%. It states that most consumer stablecoin transactions use USDT on Tron, with the average Ethereum stablecoin transaction 13x the value of a Tron one. Tron's low fees and fast block times, along with Binance making Tron the default network for USDT deposits and withdrawals, are described as key factors in that adoption. |
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1 comment I think everyone who works on crypto adoption should read it. I remember when @freeatnet told us at Devconnect about the popularity of USDT on Tron, and it was hard to believe how strong a position it has in Turkey - it was very counter-intuitive for my EU/US-biased mind. So this article explains how USDT on Tron became popular and is full of valuable data (w/ sources). Soundbites I found the most interesting: "More than a third of Latin American consumers say they have made a payment for an everyday purchase with stablecoin." "In Istanbul, it's common to see stores in densely populated areas where you can convert your Lira, USD, or EUR in and out of USDT." "For instance, Lemon lets more than 2M customers in Latin America store their stablecoins like they would with a traditional bank and even spend them using a credit card on the Visa network." "For instance, the Mercado Pago (the fintech arm of Latin America's version of Amazon, which has 200M users) is starting to support payments made by users in USDC and USDP across Latin America, starting in Chile and Mexico." "Tether owns more US Treasury Bills than Australia, Spain, and the United Arab Emirates." "So, today, Tether has an outstanding supply of more than $44B worth of USDT on Tron, even more than there is USDT on Ethereum Mainnet ($39B)." "Today, ~5M weekly active stablecoin addresses transact using stablecoins and 75% of them less than $1k per week" "Last year, the total transactions per second on all L2s surpassed those on Ethereum Mainnet" |
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