According to a renowned analyst, Tron, a popular smart contracts platform and a formidable competitor to Ethereum, is emerging as one of the most significant layer-1 blockchains. The analyst’s assessment indicates that Tron now operates more as a transactional layer, akin to Bitcoin.
Tron Leads In P2P Stablecoin Transfers
Initially, Tron gained recognition for hosting gaming decentralized applications (dApps) due to its high scalability and low transaction fees. However, the network has significantly evolved over the years. The analyst, through a post on X, highlights that Tron plays a pivotal role in providing banking solutions to the unbanked and underserved populations in developing economies.
The analyst points out that Tron has been gradually carving out a unique niche by focusing on processing trustless peer-to-peer (P2P) transactions. This approach diverges from other platforms like Solana, Avalanche, and Ethereum, which prioritize trading and decentralized finance (DeFi). By maintaining its distinct path, Tron has emerged as the leading platform for stablecoin transfers and international remittances, particularly in emerging markets.
One of the key reasons for this position is Tron’s dominance in USDT transfers. As of September 18, TronScan data reveals that over $61 billion USDT was held on Tron, surpassing Ethereum and its layer-2 solutions.
Over 95% Of Tron Users Are Not Traders
Further citing Artemis data, the analyst notes a significant difference in the nature of stablecoin transactions across various networks. On Ethereum, Ethereum layer-2s, Solana, and other layer-1 platforms, a large portion of stablecoin transactions are trading-related. However, on Tron, most USDT and stablecoin transfers are driven by P2P transactions.
In summary, only 5% of stablecoin transfers on Tron over the past year were attributed to malicious maximal extractable value (MEV) bots operating on decentralized or centralized exchanges. This indicates that approximately 95% of Tron’s USDT and stablecoin transfers were genuine P2P transactions. As of mid-September 2024, Tron’s stablecoin volume stands at over $3.3 trillion.
Comparing Tron’s stablecoin activity to Solana’s, the analyst observes a clear difference. Most stablecoin volumes on Solana are driven by trading activities. While not inherently negative, this underscores the distinct user cases and business models adopted by the developers of each platform.
In a move to enhance security, Tron recently partnered with Tether and TRM Labs to combat financial crime on its network. The collaboration resulted in the formation of the T3 Financial Crime Unit, aimed at assisting law enforcement in cracking down on criminals misusing USDT for illicit activities.
As Tron continues to solidify its position in the stablecoin and P2P transaction space, its unique approach and strategic partnerships are setting it apart from other blockchain platforms. Stay tuned to witness how Tron shapes the future of digital transactions.
