- The Tether USDT market dominance fueled by mass adoption on the Tron (TRX) network has threatened to dethrone Visa in global digital payments.
- The notable adoption of USDT on the Tron network has bolstered TRX price action amid the ongoing crypto correction that Bitcoin (BTC) led.
The Tron (TRX) network, a top-tier layer one blockchain supporting multichain web3 development, has registered heightened stablecoin activity in recent times. Remarkably, the Tron network has outshone Visa Inc. (NYSE: V) in daily transaction volume.
The use of Tether USDT on the Tron network has helped increase the underlying on-chain activity to about $53 billion, hence outshining Visa’s $42 billion volume in the first quarter of 2024. Notably, the circulating supply of TRC20-USDT surpassed $59 billion on June 15, 2024, as the number of daily new accounts on the Tron network recently reached over 319k.
Thriving Web3 Ecosystem on Tron Network
The Tron network has thrived to become a vibrant Web3 ecosystem, second after Ethereum (ETH). According to the latest Web3 data, the Tron network had a total value locked (TVL) of about $7.644 billion and a stablecoins market cap of more than $58 billion.
Some top web3 projects leveraging the Tron network include JustLend lending protocol, JustStables CDP, SUN DEX, and Bridgers DEX, among others. Notably, the Tron network supports multichain web3 development to enhance the seamless adoption of digital assets.
Crypto News Flash recently reported that the Tron network has already surpassed 216 million accounts, bolstered by the Tether USDT stablecoins.
Regulatory Hurdles
The Tron network has faced immense regulatory headwinds from the United States, mostly due to its high adoption of US dollar-backed stablecoins. Moreover, the US government has been attempting to control the use of its currency worldwide, especially in sanctioned states.
Earlier this year, Crypto News Flash reported that Binance, the leading cryptocurrency exchange by daily traded volume and registered users, had ceased supporting Circle’s USDC stablecoins on the Tron network.
Mid-last year, the US Treasury Department and the United Nations raised concerns over the use of Tether’s USDT on the Tron network by the pro-ISIS groups to launder and fund terrorism.
The continued attacks on the Tron network have significantly hindered institutional investors’ mass adoption of its stablecoins, especially from the United States and its allies.
Impact on TRX Price Action
The TRX price against the US dollar has gradually gained value in the past despite the ongoing crypto market correction. The large-cap altcoin, with a fully diluted valuation of about $10 billion and a daily average traded volume of around $413 million, has gained over 64% in the past year to trade about 12 cents on Tuesday, June 25, 2024.
The TRX price against Bitcoin has already formed a macro double bottom on the multi-year support level, which could lead to a huge upsurge against the US dollar. Furthermore, TRX coin has immense use cases in addition to deep liquidity to enable seamless trading and adoption.
TRX’s weekly price has seen the Relative Strength Index (RSI) rebound to the 50 percent level, indicating less selling pressure. If the outlook is further bullish, TRX’s price is aiming for an all-time high, similar to what BNB recently performed.
Recommended for you:
No spam, no lies, only insights. You can unsubscribe at any time.
Credit: Source link
