According to one analyst, Tron, a platform for popular smart contracts and a strong competitor of Ethereum, could be one of the most important layer-1. Based on his experiments, the platform now works more like a transaction layer, similar to Bitcoin.
Tron Leads In P2P Stablecoin Transfer
Although the network was first known for hosting gaming dapps due to its high quality and low fees, it has evolved over the years. Looking at X, the analyst says that Tron plays an important role in banking the unbanked and underserved in developing economies.
In the post, commenter notes that Tron has been slowly carving out a niche by prioritizing peer-to-peer (P2P) transaction processing. However, it is different from what other platforms are doing, including Solana, Avalanche, and even Ethereum, prioritizing trading and DeFi.
By staying the course and adopting a unique approach, the analyst considers Tron now the leading platform for stablecoin transfers and exports, especially in emerging markets.
This position is because Tron dominates USDT transfers. As of September 18, TronScan data shows that more than $61 billion USDT was held on Tron, not Ethereum and its layer-2 solutions.
Over 95% of Tron Users Are Not Traders
In addition, while citing Artemis data, the analyst notes that a large percentage of stablecoin transactions on Ethereum, Ethereum layer-2s, Solana, and other layer-1 networks come from exchanges, but it is very different from Tron. Here, most USDT and stablecoin transfers are primarily driven by P2P transactions.
In summary, only 5% of stablecoin transfers on Tron in the past year were attributed to malicious maximal extractable value (MEV) bots operating on decentralized or centralized exchanges.
This means that almost 95% of Tron’s USDT and stablecoin transfers were genuine P2P transfers. On a deeper level, the analyst notes that Tron’s stablecoin volume as of mid-September 2024 is over $3.3 billion.
Comparing the stablecoin activity of Tron and Solana, the analyst said that there is a clear difference. Most of the stablecoin volumes on Solana are due to trading activities. While not bad, it points to differences in user scenarios and business models adopted by each platform’s developers.
Last week, Tron cooperative with Tether and TRM Labs to eradicate financial crime from the network. To make this happen, the three agencies formed the T3 Financial Crime Unit to help law enforcement combat criminals who misuse USDT in their operations.
Featured image from Canva, chart from TradingView