Key Takeaways
- Tether recently issued 200 million USDT on the Tron network, continuing its trend of exclusive Tron-based expansions.
- USDC's market capitalization grew by $94.93 million.
- Compound saw a surge in USDT deposits ($247M) and loans ($147M), with an annualized lending rate of 14.87%.
- All 13 recent USDT issuances (totaling $1.48 billion) occurred on Tron—a shift from Omni and Ethereum.
- TRC20 USDT daily transactions rose 124% since May, correlating with a 15.5% increase in overall Tron network activity.
1. Stablecoin Market Overview
Circulating Supply
Total stablecoin market cap: **$115.47 billion** (up $264 million weekly).
- USDT: Issued $200 million via Tron (TRC20).
- USDC: Added $94.93 million**, reaching **$829 million.
- Minor changes: PAX (+$810K), TUSD (+$10K); BUSD, HUSD, DAI saw declines.
User Metrics
- Active Addresses: Dropped 14% post-record highs (June 7).
- Transactions: Daily TRC20 USDT transactions surged 124%, outpacing Ethereum’s 34% growth.
2. USDT’s Blockchain Migration: Omni → Ethereum → Tron
Omni Era (2014–2019)
- Security-focused: Built on Bitcoin’s blockchain via Omni Layer.
- Decline: Only 2 issuances ($550M total) in 2 years; high fees drove migration.
Ethereum Dominance (2017–2020)
- ERC20 USDT surpassed Omni in 2019 due to lower fees and DeFi integration.
- Current share: $56.68 billion** (Ethereum) vs. **$11.97 billion (Omni).
Tron’s Rise (2020–Present)
- TRC20 Advantages: Near-zero fees, scalability.
- Exclusive Issuances: $1.48 billion issued on Tron since May 2020.
- Usage Impact: Tron’s daily transactions grew 15.5%, driven by USDT activity.
Niche Chains (EOS, Liquid, Algorand)
- EOS: High complexity limits adoption ($525M USDT).
- Liquid: Privacy-focused; $16.56M USDT (mostly institutional).
- Algorand: Minimal traction ($1M USDT).
3. Trends and Predictions
Will TRC20 USDT Overtake ERC20?
- Historical precedent: ERC20 surpassed Omni in 2019.
- Current data: TRC20 growth mirrors Ethereum’s 2019 trajectory, but ERC20 remains vital for DeFi.
Does USDT Issuance Boost Native Token Value?
- Ethereum example: ETH/BTC fell during 2019 USDT expansion.
- Tron’s TRX: No significant price correlation despite USDT growth.
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FAQ
Q1: Why is Tether issuing USDT primarily on Tron now?
A: Lower transaction costs and scalability make Tron ideal for high-frequency transfers.
Q2: Could TRC20 USDT destabilize Ethereum’s DeFi dominance?
A: Unlikely—ERC20 USDT remains critical for DeFi lending/borrowing (e.g., Compound, Aave).
Q3: How does USDT’s reserve backing compare across blockchains?
A: All versions (Omni, ERC20, TRC20) share Tether’s $97.78B reserves, per transparency reports.
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Final Notes
- TRC20 USDT is reshaping liquidity flows, but Ethereum retains DeFi leverage.
- Monitor Tron’s adoption metrics for long-term USDT distribution shifts.