Increased USDT Transaction Volume on Tron Reaches $110 Billion in First Week of April
The weekly transaction volume of Tether (USDT) on Tron has reached a staggering $110 billion in the first week of April, showcasing a surge in stablecoin activity on the network. This milestone, as reported by IntoTheBlock, is double the amount of USDT transactions settled on Ethereum, solidifying Tron’s position as the leading network for USDT transactions.
The high volume of USDT transactions on Tron can be attributed to the network’s low fees, making it easier for users to access the United States dollar-backed asset. Last month, CryptoPotato noted a significant increase in USDT transaction volume on Tron, reaching levels not seen since January 2023. With an average of two million transactions daily on the network, the stablecoin’s popularity on Tron has been steadily rising since February.
Tether’s market cap recently surpassed $100 billion, underscoring the stablecoin’s dominance in the stablecoin space. While USDT is available on 15 different blockchains and protocols, a substantial portion of its supply is on the Tron network. Reflexivity Research found that nearly 94% of the total value locked in stablecoins on Tron belongs to USDT, with the stablecoin accounting for over 95% of Tron smart contract activity.
However, as USDT continues to expand its presence on Tron, concerns about illicit activities on the network have also grown. A recent analysis by TRM Labs revealed that Tron accounted for 45% of illegal transaction volume in 2023, surpassing Ethereum and Bitcoin. The network has become a hotspot for cyber criminals, North Korean hackers, terrorist financiers, and drug sellers due to its low gas fees and minimal price fluctuations. These individuals often exchange stolen or illicit crypto assets for USDT on Tron before laundering them through over-the-counter trades.
The increasing use of USDT for illicit activities has drawn scrutiny from regulators, with a United Nations report in January highlighting the stablecoin as a vehicle for money laundering and scams in Southeast Asia. Tether has pushed back against these claims, emphasizing the positive impact of USDT while acknowledging the need to address concerns about its potential misuse.
