New data reveals that the daily average volume of Tether (USDT) on the TRON blockchain has surpassed that of Visa. Market intelligence firm Lookonchain reported that Tether's dollar-pegged digital asset over TRON reached a 24-hour trading volume of $53 billion. This figure represents a nearly 10% rise on the day. In contrast, Visa's average daily trading volume stood at $42 billion.
Quick Take
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Tether's USDT reached a 24-hour trading volume of $53 billion on the TRON blockchain, exceeding Visa's average daily volume of $42 billion.
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Within the same 24-hour period, USDT on TRON recorded over 2 million transfers, marking a 5.14% increase.
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TRON has become the leading blockchain for USDT transactions, holding 53.7% of the token's market cap.
TRON Leads in USDT Transactions, Accounts for Over 50% Market Cap
Among the many blockchains supporting USDT, TRON has emerged as the leader. Recent figures show that TRON commands $59.3 billion, or 53.7%, of USDT's (TRC-20) market cap as of Q1 2024. In contrast, Ethereum, which was previously the dominant chain for USDT (ERC-20), held $50.7 billion or 45.97% of USDT's Q1 market cap. TRON's rise is attributed to its lower costs and faster transaction speeds compared to Ethereum.
2 Million Transfers in One Day
USDT transactions dominate on TRON network | Source: Lookonchain
Lookonchain’s chart highlights that USDT saw over 2 million transfers within the same 24-hour period, a 5.14% increase. This surge underscores the growing adoption and usage of stablecoins in the digital economy.
Tether Launches Gold-Backed Stablecoin aUSDT
Tether recently announced the launch of a new gold-backed stablecoin with overcollateralized reserves, known as aUSDT. This digital asset will be backed by Tether Gold (XAUT), which is stored in physical gold reserves in Switzerland. Tether CEO Paolo Ardoino stated, “This innovative solution marks an exciting milestone, and we eagerly anticipate how it will interact with the rest of the market."
Stablecoin Regulation on the Rise in Key Markets
As stablecoin usage expands, governments are crafting regulatory frameworks to support their use while maintaining financial integrity. In the U.S., Senators Kirsten Gillibrand and Cynthia Lummis introduced the bipartisan Lummis-Gillibrand Payment Stablecoin Act, which aims to create a comprehensive regulatory framework for stablecoins. This legislation addresses issuance, redemption, and reserve mandates for stablecoin providers.
In the U.K., HM Treasury is advancing its stablecoin plans with Phase 1 of its regulatory strategy, focusing on issuing, custody, and using stablecoins. Firms involved in UK payment transactions using stablecoins will need to seek authorization as payment service providers and will be supervised by the Financial Conduct Authority.
How Will EU’s MiCA Regulations Affect Tether (USDT) Use?
The European Union’s Markets in Crypto Assets (MiCA) regulation, set to take full effect on June 30th, 2024, imposes stringent regulations on fiat-backed stablecoins and e-money tokens. MiCA's key provisions include a 1:1 backing of fiat-based stablecoins with liquid reserves and a prohibition on algorithmic stablecoins. Uphold, a New York-based crypto exchange, announced the delisting of six stablecoins, including USDT, in response to MiCA.
Conclusion
The rising volume of USDT on the TRON network, surpassing Visa’s daily transaction volume, marks a significant milestone in the digital finance landscape. As stablecoins like USDT continue to grow in prominence, they offer a bridge between volatile digital assets and traditional fiat currencies. The introduction of new regulations globally aims to ensure the stability and integrity of these digital assets, further integrating them into the mainstream financial system.
