The landscape of stablecoin USDT is changing amidst intense competition between Tron and Ethereum, particularly as Bitcoin price fluctuates.
USDT Distribution Rivalry
In a recent post, CryptoQuant established that the USDT supply on Tron constitutes only a small fraction of that on Ethereum, with a ratio of 0.3 in 2019. However, in 2022-2023, this ratio climbed above 1.0 due to Tron's rise from lower transaction fees. Interestingly, Tron first surpassed Ethereum in USDT supply in 2021, coinciding with Bitcoin's peak at $64,000. In the current cycle, the ratio has declined as Bitcoin crossed $100,000. CryptoQuant explained that this indicates investors lean towards Ethereum for its security during bull markets, despite higher fees.
USDT Transactions on Tron
Tron's growing dominance is also evident in USDT transaction volumes. On June 29, the network handled $6.94 million in USDT transfers, which is more than five times Ethereum's $1.31 million on the same day. This surge indicates its appeal in emerging markets facing hyperinflation and currency instability where TRC-20 USDT acts as a practical alternative banking system accessible via mobile devices in countries like Venezuela, Turkey, Nigeria, and Argentina.
Future Growth Prospects
Tron is reportedly exploring a public listing through a reverse merger with SRM Entertainment, although rumors of Eric Trump's involvement have been denied. Tron's momentum in handling daily USDT flows underscores its expanding role in the stablecoin ecosystem, reflecting practical utility in global transactions as stablecoins continue to mirror broader crypto market cycles.
The stablecoin market continues to evolve, and the rivalry between Tron and Ethereum represents an intriguing dynamic affecting not only supply but also functional aspects in the face of global economic challenges.
