On a proportional basis, TRON surpasses its weight when it comes to stablecoins like USDT.
Although most of the stablecoins use the Ethereum network, Tron has established itself as an alternative stablecoin platform. The Tron platform is significantly smaller than Ethereum in terms of total users and market cap. However, it competes quite closely in stablecoin usage. To date, Tether has a market value of $ 32 billion and more than a third of all USDT available is on the Tron platform.
Users want a cheaper trading alternative
Most of the decentralized apps and stablecoins have been running smoothly in Ethereum transaction until recently. They are still in working order, but the increase in the use of burgh is affecting yield. Ethereum blocks are clogged with transactions. Users now have to pay exorbitant fees to interact. These fees recently averaged over $ 20 per transaction, a new record for Ethereum.
More people are discovering blockchain. However, they don’t want to spend significant amounts of money to interact with it.
Tron is emerging as an Ethereum alternative. Launched by Justin Sun in 2017, Tron is an alternative smart contract platform. Ethereum is literally fifty times bigger than Tron, which has millions of more active users. However, people realized that Tron was a viable USDT storage alternative.
More USDT is flocking to Tron, offering negligible fees of a few cents. USDT on the platform is currently close to $ 12.5 billion. This is a significant amount considering the market value of both projects.
Why are Stablecoins so important?
Stablecoins emerged in 2014 with the creation of USDT. Stablecoins offer a very important use case in the blockchain ecosystem.
They are usually backed by a physical asset or fixed at a specific price point. Stablecoins provide users with all the advantages of blockchain technology such as decentralized, unauthorized, unlimited monetary access.
Crypto offers a new tool of financial dominance for users. However, someone looking to protect their wealth may not be able to trust Bitcoin or Ethereum, which can easily drop 20 percent or more in one day.
These issues determine the speed of stablecoins that offer a non-volatile store of value. The most popular stablecoins, such as USDT and USDC, are pegged at one-to-one US dollars, meaning each coin will always be worth $ 1. This guaranteed price stability has created an excellent transfer tool and a buffer for traders who want to eliminate volatility without leaving the entire cryptocurrency market.