According to recent data from Lookonchain, the 24-hour trading volume of Tether (USDT) on the Tron network has reached $53.031 billion, marking a 10% increase within the last 24 hours.
This surge has allowed Tron USDT to surpass Visa’s average daily trading volume, a notable achievement given Visa’s status as one of the world’s leading payment processing companies. Visa processes billions of transactions across more than 200 countries and regions, making Tron’s accomplishment particularly significant.
The 24-hour trading volume of $USDT on #TronNetwork is $53B, exceeding Visa's average daily trading volume.Visa's trading volume in Q1 2024 was $3.78T and the average daily trading volume was $42B. pic.twitter.com/jolGKIUcxE
— Lookonchain (@lookonchain) June 21, 2024
The increasing demand for stablecoins, particularly during periods of market downturn, has contributed to this rise in trading volume. USDT, as a stablecoin, offers a relatively stable asset compared to other cryptocurrencies, which are more prone to volatility.
Growing Adoption and Holder Numbers
The value of Tron USDT has seen rapid growth, with over 45 million holders and more than 1.8 billion transfers recorded. This substantial increase in the number of holders and transactions indicates a broader acceptance and utilization of stablecoins in the cryptocurrency market.
Tron, developed for building decentralized applications, has also experienced a rise in its total value locked (TVL), which now exceeds $8.1 billion. This makes Tron the second-largest blockchain network, trailing only Ethereum. Additionally, the Tron ecosystem has generated over $730 million in revenue this year, positioning it just behind Ethereum’s $1.6 billion.
Data from Nansen, an on-chain analytics firm, revealed that the top three largest stablecoins—Tether, USDC, and DAI—have surpassed Visa in trading volumes. Analysis conducted around March showed that the combined monthly volume of these stablecoins exceeded Visa’s total for 2023. Specifically, Tether processed $654 billion, DAI $394 billion, and USDC $321 billion, totaling $1.369 trillion, compared to Visa’s $1.23 trillion for the same year.
Tether’s monthly volume was also comparable to Mastercard, the second-largest card provider, which had an average monthly volume of $750 billion in 2023, totaling $9 trillion for the year. Moreover, Tether surpassed PayPal, which processed $125 billion each month in 2023.
Potential Challenges for Traditional Payment Processors
The growth of USDT and other stablecoins poses potential challenges to traditional payment processors like Visa. To stay competitive, companies like Visa might need to explore launching their own blockchain-based systems and stablecoins. This shift would allow them to tap into the growing market of cryptocurrency and stablecoin transactions.
Visa has long been a dominant player in global payment processing, but the rise of cryptocurrencies and stablecoins indicates a shift in the financial landscape. The increasing volume and adoption of stablecoins reflect a broader trend towards digital assets as viable alternatives to traditional financial instruments.
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