Of the 9 blockchains that issue stablecoin USDT, one just hit the $40 billion milestone. And it wasn’t Ethereum with their ERC-20 version. It was TRON with their TRC-20 version.
This is a big surprise to most people but not those that use USDT regularly. USDT reports on volume all the time. Tron is often near or equal to ETH in circulation. But USDT on ETH has the same issues that everything has on ETH. Namely, gas fees or congested network at times.
Let’s be real. The problem is so common that there’s a site you can go to just to see how high the gas fees are. They measure it in gwei and 1 billion gwei equals 1 ETH. This gas tracker shows fees for different types of transactions. If you don’t do NFTs, then you may not know that different types of transactions pay different gas fees. It’s almost like on the highway where you can get in the carpool lane if you aren’t alone and maybe get there faster.
Today, gas fees are low but if you look at the Etherscan, you see the average cost is between $6.80-$7.20. Now if you are sending $1500 to someone that’s not a lot to pay. But if you are sending $100, then now you are paying a 7% transaction cost. You aren’t doing that much better than a bank.
Why Tron?
Back to the original question, why Tron? There are a couple of other low-cost blockchains on this list:
- EOS
- Algorand
- Solana
- and Avalanche.
Other than EOS, these other chains haven’t been around long enough or have enough stablecoin transaction volume. That’s because chains like Avalanche are investing in building out their own ecosystems first. And that’s smart of them. That’s why Avalanche has $351 million and Tron has $40 billion in volume. But as Avalanche grows its ecosystem and needs more stablecoins for DeFi, their demand for USDT will grow.
Tron’s been around since 2017. They don’t have much of an ecosystem. At least, not yet. They concentrate on transactions. And their fees are low. When I send the TRC-20 version of USDT, I never pay more than $1.50 regardless of the amount I send. It’s cheap and it’s fast. Exactly what you want from a payment system.
Tron Price Activity
Tron is the 27th largest crypto project by market cap. I bet that’s a big surprise to some of you. Its market cap is $6.6 billion and it’s currently trading at 6.5 cents. Tron’s total and circulating supply are 101 billion, thanks to our friends at Coingecko.
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