Bitrabo Editorial
One expert believes Tron, a major smart contracts platform and competitor to Ethereum, holds significant potential as a leading layer-1 blockchain. Currently, it appears to function primarily as a transactional layer, akin to Bitcoin.
Tron Excels in P2P Stablecoin Transfers
Originally recognized for its gaming decentralized applications (dapps) owing to its excellent scalability and minimal fees, Tron has transformed over the years. According to the analyst on X, Tron plays an essential role in providing financial services to the unbanked populations in developing areas.
In a recent post, the analyst mentioned that Tron has successfully carved out a niche in facilitating trustless peer-to-peer (P2P) transactions. This sets it apart from other platforms, like Solana, Avalanche, and even Ethereum, that focus more on trading and decentralized finance (DeFi) activities.
By maintaining this distinct approach, the analyst points out that Tron has emerged as the top platform for stablecoin transfers and cross-border remittances, particularly in emerging markets.
This leadership stems from Tron’s dominance in USDT transfers. As indicated by TronScan data on September 18, more than $61 billion USDT is currently on Tron rather than on Ethereum or its layer-2 solutions reported.
Majority of Tron Users Are Not Engaged in Trading
Furthermore, citing Artemis data, the analyst highlights that a larger share of the stablecoin transactions on Ethereum, including its layer-2s, Solana, and other layer-1 networks, are primarily trading-related. In contrast, Tron is different; most USDT and stablecoin transfers mainly result from P2P transactions.
In fact, only 5% of stablecoin transfers on Tron in the past year were linked to malicious maximal extractable value (MEV) bots found on decentralized or centralized exchanges.
This suggests that approximately 95% of USDT and stablecoin transactions on Tron were legitimate P2P transfers. Additionally, as of mid-September 2024, Tron’s stablecoin volume exceeded $3.3 trillion.
When comparing Tron’s stablecoin activity to that of Solana, the analyst noted a significant contrast. In Solana’s case, a majority of stablecoin volume results from trading activities. This isn’t a negative aspect, but it highlights the difference in user cases and business approaches employed by the developers of each platform.
Recently, Tron collaborated with Tether and TRM Labs to combat financial crimes within the network. This collaboration has led to the establishment of the T3 Financial Crime Unit, aimed at assisting law enforcement in addressing the misuse of USDT.