According to recent data, the 24-hour trading volume of Tether (USDT) on the TRON network has reached $53 billion, surpassing the average daily trading volume of payment giant Visa.
This milestone is a significant achievement for the TRON-based USDT, as it demonstrates the growing adoption and usage of stablecoins in the cryptocurrency ecosystem. Visa, one of the world's largest payment processors, had an average daily trading volume of $42 billion in the first quarter of 2024, according to the data.
The rise in USDT trading volume on the TRON network can be attributed to several factors. Firstly, the increasing popularity of stablecoins as a means of facilitating transactions and hedging against market volatility has driven demand for USDT. Stablecoins have seen a significant increase in monthly transfer volumes, growing over 10 times in the past four years, from $100 billion to over $1 trillion per month.
Secondly, the TRON network's low fees and fast transaction times have made it an attractive platform for USDT transactions. The network's scalability and efficiency have allowed it to handle a large volume of USDT transfers, surpassing the capabilities of traditional payment networks like Visa.
However, the growing popularity of USDT on the TRON network has also raised concerns about its potential use in illicit activities. A report from the United Nations in January revealed that criminals were using TRON's USDT in various illegal activities, such as money laundering, illegal gambling, and cybercrime, due to the blockchain's price stability and low fees.
Tether, the company behind USDT, has expressed disappointment about the UN's assessment, insisting on the token's benefits for developing economies and emerging markets. The company has also claimed to be working with authorities to crack down on illegal activities associated with USDT.
Despite these concerns, the growth of USDT on the TRON network highlights the increasing importance of stablecoins in the cryptocurrency ecosystem. As the crypto market continues to evolve, the ability of stablecoins to provide a stable store of value and facilitate transactions will likely become even more crucial.
In conclusion, the fact that Tether's USDT on the TRON network has surpassed Visa's average daily trading volume is a significant milestone for the cryptocurrency industry. It demonstrates the growing adoption and usage of stablecoins, while also raising concerns about their potential misuse.
As the crypto market matures, it will be important for regulators and industry players to work together to ensure the responsible development and use of stablecoins like USDT.
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