Tron and Stablecoins: Supporting the Rise of USDT and Beyond
TRON is a prominent blockchain network that emerged in 2017 and has since become one of the leading forces in the crypto market. TRON achieved $566 million in revenue in the third quarter of 2023, showcasing the value of 34.8% from the overall market size. TRON enforces the promotion of stablecoins, being a major facilitator of the market’s soaring growth. The system’s own structure allowed TRON to win the competition with the Ethereum and Bitcoin blockchains, currently being the service of choice for hosting the USDT stablecoin.
The rise of stablecoins signifies a new era in the digital asset trade and exchange arena, marking an increase in demand for risk management, lower volatility, and better liquidity. Stablecoins are starting to play a pivotal role in the crypto market, following the skyrocketing interest in the purchase of Bitcoin, Ethereum, and TRON.
TRON is the ecosystem primarily contributing to the extensive expansion of stablecoins within the crypto market. This is mainly due to the stable, increasing interest in Tether (USDT), which has grown tremendously in the last 6 months due to the US government’s expectations to fully legalize the crypto markets. This fueled the stakeholders’ interest in Tether, and the TRON ecosystem was among the first to introduce effective USDT trading, peaking its all-time value of stored USDT tokens.
Another factor is the versatility of the TRON ecosystem that allows it to outpace competitors. At the end of August 2024, the TRON stablecoin supply has already shown a 158% increase when contrasted with the previous year. TRON’s competitors like the BNB Chain and Ethereum have demonstrated respective growth of 103% and 46.5%, lagging behind TRON in terms of overall stablecoin supply. TRON leans heavily on the development of mechanisms for stablecoin storage and transfer, making it the current market leader in the segment.
Key Takeaways
- TRON dominates stablecoin hosting, particularly for USDT, offering fast transactions, low fees, and advanced smart contracts.
- With a 158% increase in stablecoin supply (2023-2024), TRON outpaces Ethereum and BNB in liquidity and scalability.
- TRON supports low-cost cross-border payments, P2P transactions, and DeFi activities like lending and liquidity mining.
- Users can easily swap, buy, and manage TRON and stablecoins on ChangeNOW with access to over 1225 crypto assets.
The Importance of Stablecoins in the Crypto Ecosystem
Stablecoins are of primary importance when it comes to providing stability and liquidity on the crypto market. These assets are linked to fiat currencies to balance the prices and remain relatively stable even in excessively volatile times. Thus, the stablecoins create a “safe space” against sudden value losses by protecting against volatility. Another function of stablecoins is liquidity provision. Stablecoins also bring additional revenue through liquidity mining available on most crypto ecosystems. USDT champions the digital field, being one of the most actively growing assets. Users can rely on the instrument for risk-hedging, remittance payments, and various exchange operations. USDT is the asset that serves a function of “fiat currency alternative,” allowing stakeholders to benefit from exchange without the direct transfer of their crypto funds into fiat currencies. USDT operates on the ERC-20 protocol, making it safe and easy to use in any financial operation type.
TRON’s growth of the overall market share contributes to the development of the stablecoin environment, with more options for stablecoin exchange and storage becoming available.
How TRON Supports the Rise of Stablecoins
TRON offers various advantages that make it a perfect platform for stablecoin exchange, including the following:
- TRON takes pride in securitized transactions formed on the basis of smart contracts. This mechanism offers additional protection for the funds and significantly increases scalability. Lower risks provide higher liquidity and better diversification options.
- TRON offers low-cost transactions. The fees charged by the platform are lower in comparison with the other blockchain systems. Therefore, lower slippage attracts the stakeholders and increases the volume of daily stablecoin transactions.
- TRON ensures fast transactions through an advanced payment orchestration system. Modern, complex decisions that create a worry-free experience with stablecoin transfers provide more opportunities to get higher revenues from stablecoin trading.
When compared with the Ethereum blockchain, TRON leads in the volume of available transactions executed within one second time (TPS). TRON’s blockchain technology allows it to process up to 2,000 TPS when Ethereum stops at 30. TRON beats Ethereum when it comes to liquidity provision and smart contract operation as well, since TRON was initially aimed at content creators as its main audience. As such, its smart contract system is much more specialized and provides better service options. However, TRON loses to Ethereum in terms of the volume of DEX apps in the system and the overall security terms.
When compared with Bitcoin, TRON has a low block time (3 seconds), whereas Bitcoin has a 1 hour block time. TRON’s on-chain governance outpaces Bitcoin’s off-chain governance in terms of efficiency. The reason is the same as with Ethereum: TRON’s sophisticated smart contracts. TRON beats Bitcoin on the maximum transactions available per second but loses in terms of security, traded asset variety, and decentralization execution.
Use Cases for TRON and Stablecoins
Practical examples best show TRON’s extensive capacity to support and enhance stablecoin transactions. The first case is connected with cross-border transactions, as TRON allows these to happen with the lowest possible commissions and fastest pace. This is the cheapest mechanism for migrants to exchange their home currency in the foreign country, help their family back home, and even make certain payments for their loans. $200 of cross-border remittance sent in stablecoins with TRON will be 60% cheaper for the sender than in fiat currency.
Another case is the execution of Peer-to-Peer (P2P) transactions. Smart contracts make it possible to process transactions without the usage of official banking services that can at times be rigid, over-demanding, and complicated. P2P transfers become easier to execute, share a lower commission, and are available in a wider range of options as compared with regular banking.
Swapping TRON and Stablecoins on ChangeNOW
TRON and USDT exchange are available on ChangeNOW, as well as other stablecoins and crypto assets. Here is a step-by-step guide to how to exchange stablecoins using ChangeNOW:
- Visit the ChangeNOW website.
- Select USDT and TRON and choose the options “You Send” and “You Get,” respectively. The choice depends on what currency you want to exchange for another.
- Fill in the volume you want to swap.
- Copy and paste your TRX wallet credentials.
- Review the credentials of your transaction and move on to execute it.
- Click “send” to execute the transaction.
- Get your TRX stablecoins/any other currency.
Through ChangeNOW, stablecoin exchange becomes worry-free. Users can easily select any exchange pair, immediately see the rates, calculate their revenues, and execute the transaction in the way discussed above. ChangeNOW gives a unique opportunity to exchange stablecoins across different blockchains, merging multiple ecosystems through one instrument to perfectly serve its users’ purposes.
Buying and Selling TRON and Stablecoins on ChangeNOW
ChangeNOW gives a wide range of benefits to the users who choose the platform for swapping, buying and selling stablecoins and other crypto assets. It provides access to more than 1225 crypto assets, including major stablecoins like Tether (USDT) and USDC, TRON (TRX), Ethereum (ETH), and more. Moreover, there is an option to get consistent referral profits, amounting to 0.4% of the referral bonus for each transaction. ChangeNOW also gives consistent on-and-off-ramp services for both fiat and cryptocurrency assets.
Use Cases for TRON and Stablecoins
TRON is used within the DeFi ecosystem among other popular assets. Many users utilize the benefits of stablecoins to ensure that their international money transfers and personal transactions (P2P) are executed safely. Yet, the usage of stablecoins within DeFi is much wider. Stablecoins provide lending options as well, giving users the ability to borrow cryptocurrency assets. Serving as an ideal basis for liquidity pool creation, as has been mentioned earlier, this tool becomes the best option for yield farming.
This, in turn, allows users to get more revenue, reducing impermanent loss and maintaining low commissions and the DEX ecosystem. Since stablecoins are also much less vulnerable to sudden price fluctuations and damping, their wide usage allows many DEXes to exercise user governance. This would mean that the users will have the option to facilitate DEX decision-making in the desired direction, using their stablecoin assets to provide them with voting options.
The Future of Stablecoins and TRON
The future of stablecoins and the TRON ecosystem looks promising. TRON has already emerged as one of the market leaders for stablecoin operations and continues to outpace its competitors with modern decisions to enhance the users’ trading experience. TRON’s USDT transfer volume has reached an all-time high in December 2024, achieving a monthly value of $587.2 billion a month. According to the analysts’ estimates, TRON is expected to grow significantly in the next two years. The current trend in Bitcoin’s soaring growth will likely double the revenue of other stablecoins, helping TRON reach the maximum market share above 40% in 2025.
Although TRON currently lags behind the Ethereum and Bitcoin ecosystems in terms of decentralized exchange system integration, it will likely change in the near future. TRON values innovation, increasing smart contract beneficence, interoperability, and the number of DEXs that accept the system as the main blockchain provider. In 2-3 years, the TRON ecosystem may change the oligopoly of Binance’s and Ethereum’s dominance, raising stablecoin trading standards.
Regulatory issues that will convert the cryptocurrency market into a new operational reality leave space for future trend predictions. Thus, stablecoins will likely top regulatory policies, drawing the authorities’ attention to such assets. Additionally, regulatory policies may partially legalize cryptocurrencies as an official payment method, mainly in Southeast Asia, the European Union, and Latin America. This trend is already visible due to the Markets in Crypto Assets (MiCA) regulation that was introduced for the purpose of keeping the crypto assets held by EU residents under control. The regulation was introduced in July 2024 and is likely to be the start of the trend. It was meant to put constraints on fraud, money laundering, and other illegal usage of crypto. Therefore, TRON will likely react with transparent policies and focus on KYC and AML policy enhancement.
Conclusion
To summarize, TRON fosters the spread of USDT and other stablecoins, enhancing their role in the market. TRON has pioneered fast stablecoin exchange, brought the dominance of the USDT to the platform, and intensified stablecoin trading volumes. As stablecoin trading continues to peak, TRON will likely maintain the core role in stablecoin liquidity promotion and market evolution.
The digital payment field faces a magnificent upturn, and to become a major part of such positive changes, visit ChangeNOW to swap, buy, sell, provide liquidity, and diversify portfolios with stablecoins. ChangeNOW will make any crypto routine a simple and pleasant process.
