Tether Mints Another $1 Billion USDT on Tron, Setting New Supply Record Amid Network Dominance

Tether has extended its foothold in the stablecoin space, this time on the Tron blockchain.

The stablecoin issuer has added another $1 billion worth of USDT on the Tron network, ramping up Tether’s AUM on the blockchain to an all-time high of $71.7 billion. USDT on Tron now constitutes nearly half of the total Tether circulating supply of $147.3 billion.

The current issuance, disclosed through Tether’s official channels and verified on-chain, brings the total amount of USDT minted on Tron to an eye-watering $12 billion since just January 29. This not only underscores Tron as a burgeoning stablecoin ecosystem but also highlights its pivotal role in the low-cost, high-speed money transfer sector—an area where stablecoins have your back.

Rising supply coincides with unflagging demand for USDT on the Tron network, where users and institutions are gravitating for the speed of transactions, the minuscule fees those transactions incur, and the general interoperability of the Tronic economy with markets around the world. The Tron network has long marketed itself as a workable alternative to Ethereum for high-throughput transfers of stablecoins, especially in places like Asia, South America, and Africa, where being cost-effective really matters.

No longer just the subject of speculation, Tron’s supremacy in the stablecoin space is now a demonstrable fact. The network has become the home for close to 50% of Tether’s (USDT) total outstanding supply, with $71.7 billion worth of the popular stablecoin flowing through it as of February 23, 2023. That’s up from a mere $16 million in January 2020, usurping both Ethereum and BNB Chain in the interim.

The progress made by the cryptocurrency world was underlined by Justin Sun, one of its most visible and outspoken figures. Sun is founder of the Tron Network and is a prominent player in the entire crypto space. He said reaching over $70 billion in total supply for USDT on Tron was a milestone not just for the platform but also for the entire crypto community. He called it a “miracle.”

Sun didn’t just stop there. He then talked up the trust that USDT on Tron represents, doing a couple of backflips over what may be a somewhat questionable exercise in trusting Tether.

“This is just the start of our work,” said Sun. “This all carries the great weight of user trust and community responsibility.” Sun’s remarks are a reminder that while Tron’s achievement is impressive, the platform’s leaders see this event not as a climax but as a significant stepping stone toward what they really want to do: shoot for even greater expansion and responsibility in maintaining a decentralized financial ecosystem.

Tether’s ongoing dependence on Tron showcases a strategic alignment. The issuer of the stablecoin has a clear, consistent preference for networks that provide scalability and affordability. And Tron is doing that. Meanwhile, Ethereum is still stuck with high gas fees, Layer 2 improvements notwithstanding. So Tether is now using Tron for USD₮ transfers—and doing so makes a lot of sense.

The current growth of USDT on Tron portends something not so nice for the crypto ecosystem. USDT is a stablecoin, which in decentralized finance (DeFi), remittances, trading, and an otherwise burgeoning crypto payments infrastructure, provides a key pillar. With over $70 billion worth of USDT on a single network, Tron is not just a technical backbone—but also a liquidity hub. The functions that USDT serves with this kind of scale and bandwidth are not those typically associated with the warm and fuzzy world of crypto decentralization.

Also, as regulatory focus intensifies on stablecoins, the volume and velocity of USDT issuance on Tron will almost certainly draw some fire. Yet at this moment, the market appears to be rewarding performance, and both Tether and Tron keep delivering that in spades.

As we look to the future, with the impetus from this $1 billion minting and the backing of a user base that keeps swelling, Tron’s authority in the stablecoin world seems more robust than ever.

And this recent accomplishment is not merely a waypoint on a growth chart—it’s also an event that Justin Sun and his wider community have high hopes will usher in an era of more participatory and more scalable global finance.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!

The post Tether Mints Another $1 Billion USDT on Tron, Setting New Supply Record Amid Network Dominance appeared first on The Merkle News.