The rising costs of the Ethereum blockchain’s gas fees have benefited a number of its competitors. One of the big beneficiaries is the Tron blockchain.
The latest data shows that the amount of Tether (USDT) transacted on Tron has hit $24 billion which has surpassed that on the Ethereum blockchain. The reason for this is the low transaction fees of Tron.
According to Tron creator Justin Sun, they expect that the USDT transacted on the network to grow exponentially. He added that the blockchain was about to become a globally accepted settlement layer and a next-generation blockchain protocol.
This is the third year that USDT is trading on the Tron blockchain. It launched on Tron as a TRC-20 token back in 2019, and the growth has been phenomenal. The idea was to give users a chance to get into DeFi easily and cost-effectively. With its growth surpassing transactions on Ethereum, it is a clear indicator that Tron has achieved its objective regarding USDT.
Interestingly, Tether is the most transacted crypto asset globally. Per a report from CoinGecko, the Stablecoin is traded more often than its illustrious counterparts like Bitcoin and Ethereum. This could be because the asset is being used by traders to lock-in their trading gains as it is pegged to the US Dollars.
This news has created a positive price momentum for TRX. Tron (TRX) is up by 27% in the week and hasn’t dumped with the rest of the market today.