It’s not the world’s largest blockchain, of course, but Tron (TRX) is gaining ground when it comes to transactions involving USDT. In fact, at the time of publication, Google Trends shows that global interest in USDT on the Tron network was as high as it was in USDT on the Ethereum network in the previous year.
What does it mean for Tron?
This trend is further supported by an article titled “The Relentless Rise of Stablecoins” published by Brevan Howard, a Jersey Island-based hedge fund with over $35 billion in assets under management (AUM). According to the article, between January and August 2023, Tron accounted for 35% of the volume. Accordingly, it accounted for 37% of transactions and 49% of active stablecoin addresses.
Similarly, the article draws attention to another situation when it comes to stablecoin activity. Ethereum (ETH)’s loss was not only against Tron. At the same time, it is decreasing against other blockchains such as Avalanche (AVAX) and Polygon (MATIC).
Tron’s growth is primarily driven by emerging markets
According to Google Trends, Tron’s growth and dominance over Ethereum is primarily driven by activity in multiple emerging markets. For example, it arouses particular interest in Iran, Russia and Ukraine. It has also become noticeably more popular in the Netherlands and Australia over the past 365 days. In contrast, Ethereum maintains its dominance in the US.
Tron is reportedly becoming increasingly popular in Latin America as well. Sources in Argentina, for example, told The Defiant that they estimate as much as 95% of stablecoin transactions are processed using Tron. They also noted that low transaction costs and high speed are the driving forces behind this trend.
TRX gains ground through 2023
As the popularity for stablecoin transactions increases, TRX has also begun to gain value in recent months. Its price has increased by nearly 60% in the past year and by more than 3% in the last 24 hours. Accordingly, when we look at Kriptokoin.com, it increased to $ 0.099. It also reached the highest level since late 2021.
The rise of Tron is accompanied by a series of steps taken by the Tron Foundation. In August 2023, it partnered with Curve Finance, bringing this company’s DEX to its network. It also integrated with Google Cloud in early October in an attempt to increase on-chain activity. Blockchain’s growth in 2023 is in stark contrast to the reputation the foundation and its founder, Justin Sun, have earned within the community. Sun in particular proved to be a controversial figure. It even became the target of an SEC lawsuit filed in March 2023 for allegedly selling unregistered securities.