Nov 16, 2024
6thTrade
Tether has minted $1 billion in USDT stablecoins on the Tron network, incurring no transaction fees, according to data from on-chain analytics firm Arkham Intelligence. The transaction, conducted on November 14, underscores the advantages of Tron’s low-cost blockchain infrastructure for stablecoin operations. $TRX
Zero-Fee Transaction Details
Arkham Intelligence identified the transaction originating from a "black hole address" on the Tron network to Tether’s multisignature wallet, which begins with the characters "TBPxh." Shortly after the USDT minting, the funds were transferred to Tether’s treasury, also without incurring any fees.
The Tron network’s low fees make it particularly attractive for stablecoin transactions, especially in developing countries, where high network fees can significantly reduce the value of payments or remittances.
USDT on Tron vs. Ethereum
According to Tether’s transparency data:
Tron network: Currently hosts $62.7 billion in authorized USDT.
Ethereum network: Slightly ahead with $62.9 billion in authorized USDT.
Despite Ethereum’s larger ecosystem, Tron has become a major hub for stablecoin activity due to its efficiency and cost advantages. This surge in activity contributed to Tron generating $577 million in revenue during Q3 2024.
Tron’s Growing Stablecoin Market Share
Tron’s significance in the stablecoin ecosystem has grown rapidly:
In August 2024, Tron became the second-largest blockchain ecosystem by stablecoin market share, accounting for 37.9% of the market compared to Ethereum’s 55.7%.
That same month, Tether minted another $1 billion USDT on Tron. Tether CEO Paolo Ardoino clarified that the tokens were authorized but not issued—remaining in inventory until new issuance requests are made.
Market Implications of Stablecoin Supply
The minting of stablecoins like USDT often serves as an indicator of market sentiment. A rise in newly minted tokens is typically seen as a bullish signal, suggesting increased speculation and market activity. Conversely, a decline in supply may indicate reduced investor interest and lower trading volume.
With $1 billion USDT minted on Tron, the blockchain continues to establish itself as a critical player in the stablecoin and decentralized finance (DeFi) sectors, offering a low-cost, high-efficiency alternative to Ethereum.
