In May 2025, TRON surpassed Ethereum in USDT issuance, with over $77.7 billion worth of USDT circulating on its network—marking a historic shift in stablecoin dominance. This milestone isn’t just about numbers; it reflects a deeper transformation in blockchain infrastructure, user demand, and real-world utility. As TRON takes the lead in both total and circulating supply of USDT, it signals a growing preference for high-efficiency, low-cost networks capable of supporting global financial flows.
This article explores how TRON achieved this feat through technological innovation, ecosystem expansion, and strategic positioning—establishing itself as a foundational layer for decentralized finance (DeFi) and cross-border payments.
The Technical Edge Behind TRON’s Dominance
When users choose a blockchain for stablecoin transactions, two factors matter most: speed and cost. TRON excels in both, offering a compelling alternative to Ethereum’s often congested and expensive network.
Speed: Matching Real-World Payment Demands
TRON processes transactions in seconds, with a throughput exceeding 2,000 transactions per second (TPS)—on par with Visa’s payment infrastructure. In contrast, Ethereum’s base layer handles around 30 TPS. During periods of high activity, Ethereum frequently experiences congestion, leading to delayed confirmations and unpredictable fees.
This performance gap makes TRON particularly attractive for high-frequency transactions such as remittances, merchant payments, and DeFi operations—use cases where speed is non-negotiable.
Cost Efficiency: Near-Zero Transaction Fees
Transaction cost is another critical differentiator. On TRON, average fees remain below $0.01**, with some transfers costing as little as **$0.0002—or even zero under certain conditions.
TRON’s fee model relies on bandwidth and energy resources:
- Bandwidth: Automatically replenished daily at no cost.
- Energy: Can be purchased or rented—renting reduces costs by up to 80% compared to ownership.
For frequent users, renting energy allows sustained low-cost transfers at approximately $0.005 per transaction, making microtransactions and bulk operations economically viable.
Compare this to Ethereum, where gas fees can spike to $10–$20 during peak times—nearly 100 times more expensive than TRON for basic transfers.
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Gas-Free Transactions: Removing Barriers to Entry
In April 2025, TRON launched GasFree, a groundbreaking feature that eliminates the need for native tokens (TRX) in stablecoin transfers. Instead, users pay fees directly in USDT when transferring stablecoins.
This innovation lowers the onboarding barrier for new users who may not want to hold multiple assets just to transact. It also reinforces TRON’s position as the premier stablecoin issuance network by aligning user experience with real-world usability.
Core Innovations Driving Performance Gains
Behind these improvements lies continuous technical evolution. Since entering its "Great Voyage" phase in 2021, TRON has accelerated development, culminating in the GreatVoyage-v4.8.0 (Kant) upgrade released in May 2025.
Key enhancements include:
- EIP-1153 – Transient Storage: Reduces smart contract execution costs by 35%, improving efficiency for DeFi protocols and DApps.
- EIP-4844 – Proto-Danksharding Support: Enables interoperability with Ethereum Rollups, boosting cross-chain transaction capacity to 1,500 TPS.
- EIP-5656 – Memory Copy Optimization: Cuts DApp deployment time by 50%, enhancing developer experience and accelerating ecosystem growth.
These upgrades reflect a mature engineering roadmap focused on scalability, interoperability, and developer accessibility—three pillars essential for long-term blockchain adoption.
From Stablecoin Leader to Full-Stack Financial Infrastructure
TRON’s success extends beyond technology. Its ecosystem has expanded rapidly, supported by strong adoption metrics and strategic partnerships.
Explosive Growth in Network Activity
According to CryptoQuant’s 2024 TRON Annual Report:
- Monthly transactions surged from 129.8 million in February 2024 to 239.6 million in October 2024—an 84% increase.
- Total annual transactions reached 2.38 billion in 2024 alone.
As of May 20, 2025, the TRON network hosts over 307 million accounts, up 40% year-over-year, with total value locked (TVL) exceeding $23.6 billion.
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Stablecoin Volume and Liquidity Momentum
TRC20-USDT dominates TRON’s stablecoin landscape, accounting for 98.5% of all stablecoins on the network. Daily transaction volume averages $19 billion, driven largely by demand in emerging markets and remittance corridors.
Every time Tether mints new USDT on TRON, liquidity across DeFi protocols increases proportionally—creating a self-reinforcing cycle of growth and utility.
Expanding Influence: Global Reach and Regulatory Engagement
Beyond technical and economic metrics, TRON has strengthened its global footprint through high-profile initiatives and regulatory cooperation.
Strategic Partnerships and Brand Visibility
In Q1 2025, the Trump family launched World Liberty Financial (WLF), purchasing significant amounts of TRX. Additionally:
- The USD1 stablecoin, backed by a Trump-affiliated organization, debuted on Huobi HTX.
- TRON founder Justin Sun attended a private dinner hosted by former U.S. President Donald Trump.
These developments amplified TRON’s visibility in mainstream financial and political circles, lending credibility and brand strength to its ecosystem.
Compliance and Institutional Integration
Regulatory alignment remains a key priority:
- TRX ETF Filing: A spot TRX ETF has been submitted to the U.S. SEC, potentially becoming the first staking-enabled crypto ETF if approved.
- FATF Travel Rule Compliance: TRON collaborates with Tether’s T3 anti-financial crime unit and the government of Dominica to implement on-chain monitoring systems compliant with international standards.
Such efforts demonstrate TRON’s commitment to bridging decentralized networks with regulated financial systems.
Frequently Asked Questions (FAQ)
Q: Why is TRON more popular than Ethereum for USDT transactions?
A: TRON offers significantly lower fees and faster confirmation times—critical for high-volume stablecoin transfers—making it more practical for everyday use.
Q: Is USDT on TRON safe and widely accepted?
A: Yes. TRC20-USDT is supported by major exchanges, wallets, and payment platforms globally. Its widespread adoption confirms its reliability and liquidity.
Q: Does TRON support smart contracts and DeFi apps?
A: Absolutely. TRON supports full smart contract functionality and hosts hundreds of DeFi applications, including JustLend, SunSwap, and USDD.
Q: How does GasFree work on TRON?
A: GasFree allows users to pay transaction fees directly in USDT instead of TRX when sending stablecoins—simplifying the user experience and reducing entry barriers.
Q: Can other stablecoins compete with USDT on TRON?
A: While other stablecoins exist on TRON, USDT dominates due to network effects, liquidity depth, and user trust built over years of consistent performance.
Q: What role does scalability play in TRON’s success?
A: High throughput (2,000+ TPS), low latency, and efficient resource management enable TRON to handle global-scale payment volumes without congestion.
Final Thoughts: Building the Future of Financial Infrastructure
TRON’s rise to the top of the stablecoin hierarchy is no accident—it's the result of sustained technological advancement, ecosystem development, and strategic foresight.
By focusing on efficiency, affordability, and real-world utility, TRON has positioned itself not just as a blockchain, but as a global financial settlement layer. With growing institutional interest, regulatory engagement, and cross-chain integration, it is well on its way to becoming a core bridge between traditional finance and Web3.
As Messari noted in Crypto Thesis 2024, TRON plays a vital role in democratizing access to digital finance—driving adoption across borders and socioeconomic lines.
The vision articulated by Justin Sun—to build a decentralized infrastructure for universal financial access—is no longer theoretical. It’s unfolding in real time, one fast, low-cost transaction at a time.
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