TL;DR
- Weekly USDT trading volume on Tron reaches $110 billion, more than doubling Ethereum’s volume.
- The lowering of network fees on Tron has made it easier for users around the world to access USDT backed by the US dollar.
- Despite the growth in transactions, the use of USDT on Tron has also been associated with illicit activities, raising regulatory concerns.
The world of cryptocurrency continues to evolve rapidly, and a significant milestone in the Tron ecosystem has recently been highlighted.
According to recent data provided by IntoTheBlock, a blockchain analytics platform, the weekly transaction volume of Tether (USDT) on the Tron network reached an impressive $110 billion during the first week of April this year.
The weekly USDT transaction volume on @trondao hit $110B last week, more than 2x what was settled on Ethereum.
Thanks to its low network fees, USDT on Tron has become a way for many people around the world to access the US dollar. pic.twitter.com/G2yPcWqjDw
— IntoTheBlock (@intotheblock) April 10, 2024
This figure represents more than double the volume of USDT transactions that were settled on the Ethereum network in the same period.
This massive increase in the stablecoin transaction volume on Tron has been primarily attributed to the low network fees offered by the Tron blockchain.
These reduced fees have paved the way for users around the world to easily access and use USDT, a stablecoin cryptocurrency backed by the US dollar, on the Tron network.
Despite these advances and the increase in Tether adoption on Tron, a major concern has also arisen related to the use of this cryptocurrency.
Several reports have noted an increase in illicit activities associated with USDT on the Tron network
According to analyzes carried out by blockchain research firms such as TRM Labs, Tron has represented a considerable percentage of the total volume of illegal transactions in 2023, surpassing Ethereum and Bitcoin in this regard.
This scenario has led to closer scrutiny by regulators and global organizations.
A United Nations report identified USDT as a vehicle for money laundering and scam activities in Southeast Asia, although issuers of the stablecoin, such as Tether, have defended their cryptocurrency by highlighting its positive impact and role as a financial bridge global.
As Tron continues to lead in Tether transaction volume, it is crucial to address and mitigate any illicit activity associated with this cryptocurrency to ensure a safe and reliable crypto ecosystem for all users and market participants.
