Weekly USDT trading volume on Tron 2x higher than Ethereum: ITB

Weekly Tether (USDT) trading volume on Tron reached $110 billion in the first week of April, indicating increased stablecoin activity on the network.

According to a x.com/intotheblock/status/1777968895497748544″ data-wpel-link=”external” target=”_blank”>cheep According to IntoTheBlock, Tether's latest milestone on Tron was double the amount the stablecoin settled on ethereum. This indicates that Tron has maintained its position as the leading network for USDT transactions.

USDT records $110 billion volume on Tron

IntoTheBlock attributed the high USDT transactions on Tron to the network's low fees, saying that the blockchain has allowed users to easily access the US dollar-backed asset.

Last month, CryptoPotato reported that USDT transaction volume on Tron was increasing to peak levels seen in January 2023. The stablecoin averaged approximately two million daily transactions on the network, a surge that began in February.

Tether's market capitalization recently reached $100 billion, strengthening the asset's dominance in the stablecoin space. While the stablecoin is available on 15 blockchains and protocols, a significant portion of its supply is located on the Tron network.

Earlier this year, Reflexivity Research found that approximately 94% of the total stablecoin value locked on Tron belongs to USDT. The dominance also extended to Tron smart contracts, of which USDT accounted for more than 95%. The USDT contract consumes a large portion of the on-chain energy, indicating that the asset was used for stablecoin transactions with limited diversification.

USDT linked to illicit activities

As USDT expands its presence on Tron, so do illicit activities on the network. An analysis by blockchain forensics firm TRM Labs revealed that Tron accounted for 45% of illegal transaction volume in 2023, ahead of ethereum and bitcoin, which were responsible for 24% and 18%, respectively.

Tron has become a favorite network of cybercriminals, North Korean hackers, terrorist financiers and drug sellers due to its low gas rates and minimal price fluctuations. These criminals frequently trade their stolen and illicit crypto assets, primarily for USDT, on Tron before they launder them for over-the-counter trading.

The increasing use of USDT for illicit activities has attracted scrutiny from several regulators. In January, a United Nations report even identified the stablecoin as a vehicle for money laundering and scams in Southeast Asia. However, USDT issuer Tether expressed disappointment over the UN's claims, insisting that the report only focused on the asset's alleged connection to illicit activities and not its positive impact.

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