TRON (TRX) has become a dominant player in Tether (USDT) transfers, surpassing Ethereum in terms of user base and transaction volume. In 2024, TRON processed an average of $17.9 billion in daily USDT transfers, with DeFi and trading volumes reaching an even higher $5.46 trillion. This surge in activity positioned TRON as one of the most active platforms for USDT transfers, despite a decline in supply by the end of 2025.
The beginning of 2 showed continued growth for stablecoins, with the total supply surpassing a record $200.6 billion. TRON itself held more than 58 billion tokens out of this total. On average, the TRON network facilitated over 2 million daily transactions, encompassing various sizes and categories. This includes both retail transactions using USDT and native forms of DeFi and centralized swaps. This activity made TRON the leading fee generator in early 2025, producing $43.74 million in fees during the first week of the year, exceeding Ethereum's $30.63 million.
USDT Usage on TRON Peaked in Late 2024
While TRON has seen a rollback in some of its USDT issuance, it still boasts a significantly larger user base and transfer volume compared to Ethereum. Over 83% of USDT users opt for TRON's TRC-20 version. These users contribute up to 60% of daily transfers, facing minimal competition from newcomers like Celo. However, TRON transfers tend to have a lower average volume per user compared to Ethereum's $233,000. TRON transfers average around $41,000 per user, but these transactions are not evenly distributed, as TRON still caters to a substantial number of whale and professional transactions.
Ethereum Maintains Liquidity Advantage
Ethereum's USDT supply has grown to $79.6 billion, making it the most liquid and widely tradable version. However, its use is primarily limited to entry and exit points. In contrast, TRON's token finds application in e-commerce and P2P marketplaces. The TRON network has a smaller DeFi sector, with USDT playing a less prominent role in collateralization. TRON's total value locked sits at $7.66 billion, with the majority concentrated in JustLEND.
TRON's Distinct Stablecoin Usage Pattern
The rise of TRON-based USDT spending reflects a unique trend over the past year. TRON's growth coincides with a similar expansion on BNB Smart Chain. Both chains offer lower transaction fees and cater to the demand from the Asian crypto market. TRON has emerged as the leader for both senders and receivers of USDT, particularly for high-value transfers. Daily active wallets on TRON and BNB Smart Chain have grown to between 2 and 4 million.
TRON Dominates Large-Scale Transactions
While TRON holds a smaller share of transactions under $100, with small-scale users gravitating towards BNB Smart Chain, it remains dominant for transactions in the $1,000-$10,000 and $10,000-$100,000 ranges. This activity suggests a prevalence of whale transfers between exchanges, DEX facilities, or storage wallets.
Tether Treasury Holdings and Exchange Liquidity
The Tether treasury maintains a reserve of around $2.1 billion in TRC-20 stablecoins, readily deployable if market demand surges. Several top exchanges hold the TRC-20 version, with USDT being a key token for OKX, Gate.IO, Kraken, and Bitfinex (within the top 10 wallets). Notably, Kraken and Bitfinex are among the most active traders of the TRC-20 token, contributing to higher liquidity for BTC and other assets. Bybit also holds a significant amount of TRC-20 USDT (over 105 million).
Regulatory Scrutiny and Security Measures
The usage of TRON-based USDT witnessed a slowdown towards the end of last year due to EU regulations that excluded USDT from its purview for lacking cash reserves in a Euro Area bank account. However, the enforcement of MiCA regulations hasn't dampened demand for global transfers. TRON-based stablecoins are also subject to close monitoring for potential criminal activity.
January 2025, Cryptoniteuae