- Tether minted $1 billion in USDT on Tron with no transaction fees.
- Tronâs low-cost network drives high stablecoin usage in developing markets.
- Tron and Ethereum networks hold nearly equal amounts of circulating USDT.
Tether has issued $1 billion in USDT stablecoins on the Tron network, leveraging its fee-free transaction capabilities. Data from Arkham Intelligence highlighted the transaction, which occurred on November 14.
The stablecoins were minted from a âblack hole addressâ on Tron and transferred to Tetherâs multisignature wallet before being moved to the companyâs treasury. Both transactions incurred no fees, underscoring Tronâs position as a cost-effective blockchain for stablecoin activity.
Tronâs Low-Cost Advantage in Stablecoin Transactions
Tronâs minimal transaction fees have made it a preferred network for stablecoin users, particularly in regions where high remittance costs can significantly reduce the value of funds sent. According to Tetherâs transparency page, the network currently hosts $62.7 billion in circulating USDT, close to Ethereumâs $62.9 billion.
Despite Ethereumâs larger ecosystem, Tronâs competitive fee structure has drawn significant stablecoin traffic, contributing to the blockchainâs $577 million revenue during Q3 2024. This makes Tron a key player in the stablecoin sector, with its market share only second to Ethereum.
Source: Arkham Intelligence
Gauging Market Sentiment Through Stablecoin Supply
Tetherâs recent minting follows a trend of replenishing authorized but unissued USDT supply, held until issuance requests are made. These movements are closely watched by traders as an indicator of market sentiment.
An increase in stablecoin supply often signals heightened investor activity and market optimism, while a decline can indicate reduced trading interest. Tether CEO Paolo Ardoino has previously clarified that such transactions are intended to maintain liquidity and meet future issuance demands.
