In recent times, the total market capitalization of stablecoins has been continuously decreasing, but Tether (USDT) continues to issue more of this cryptocurrency, boosting its market capitalization even during a downtrend.
The current total supply of USDT has reached $85 billion, surpassing the highest level in 2022. This is seen as a positive sign by optimistic analysts. However, it’s worth noting that over $40 billion (nearly 50% of the total supply) of USDT is currently on the TRON network. In contrast, Ethereum holds the second position in terms of USDT holdings.
USDT plays a crucial role in the liquidity of the cryptocurrency market. However, relying too heavily on a specific network can pose significant risks if that network encounters any issues. Nevertheless, the TRC-20 network of TRON has so far been able to meet the needs of traders and investors effectively.
The question raised within the community is: “Why does the majority of USDT supply lie on the TRON network?”
There are several reasons for this:
– Tether continues to issue billions of USDT each month, with a significant portion being issued on the TRON network. From the beginning of 2023 until now, the USDT supply on the TRON network has been steadily increasing, contributing to the growth of its market capitalization.
– The exchange BitGo announced its support for USDC (TRC20) and USDT (TRC20) on the TRON network, which has driven the demand for using USDT on TRON.
– The Telegram application supports users in sending USDT (TRC20) to their contacts directly within the app, which further boosts the usage of USDT on the TRON network.
– With low transaction fees, the TRC-20 network has become a popular choice among users, and TRON quickly established itself as an ideal network for non-custodial storage.
– In the context of Argentina’s inflation rate surpassing 109%, people tend to seek the stability of the USD. USDT (TRC20) appears to be the most efficient solution for trading USD conveniently with low fees.
Currently, Tether has deployed USDT on 15 different blockchains, including TRON, Ethereum, Solana, Avalanche, Algorand, Polygon, Omni, EOS, Liquid Network, Kusama, Tezos, Bitcoin Cash, Near, Polkadot, and Kava.