An analyst suggests that Tron, a widely recognized smart contracts platform and strong rival of Ethereum, may emerge as a leading layer-1 solution. From his perspective, the platform currently functions more like a transactional layer, akin to Bitcoin.
Tron Excels in P2P Stablecoin Transfers
Initially, the network gained popularity for hosting gaming dapps due to its impressive scalability and low costs, but it has significantly evolved over the years. Taking to X, the analyst claims that Tron plays a pivotal role in providing financial services to the unbanked and underserved in developing countries.
In a recent post, the analyst points out that Tron has been gradually establishing itself by focusing on the facilitation of trustless peer-to-peer (P2P) transactions. This stands in contrast to other platforms such as Solana, Avalanche, and even Ethereum, which prioritize trading and DeFi.
By maintaining its strategy and embracing a distinct approach, the analyst notes that Tron has become the foremost platform for stablecoin transfers and international remittances, particularly in emerging markets.
This prominence is due to Tron’s dominance in USDT transfers. As of September 18, TronScan data reveals that over $61 billion USDT was stored on Tron, surpassing Ethereum and its layer-2 solutions.
Over 95% Of Tron Users Are Not Traders
Furthermore, while referring to Artemis data, the analyst highlights that a larger portion of stablecoin transactions on Ethereum, Ethereum layer-2s, Solana, and other layer-1 networks stem from trading, unlike Tron. Here, the majority of USDT and stablecoin transfers primarily arise from P2P transactions.
In conclusion, just 5% of stablecoin transfers on Tron over the past year can be attributed to malicious maximal extractable value (MEV) bots involved in decentralized or centralized exchanges.
Consequently, approximately 95% of Tron’s USDT and stablecoin transfers were legitimate P2P transfers. Digging deeper, the analyst notes that Tron’s stablecoin volume as of mid-September 2024 exceeds $3.3 trillion.
When comparing Tron’s stablecoin activity with Solana’s, the analyst indicates a noticeable difference. The majority of stablecoin volumes on Solana are attributed to trading activities. While this is not inherently negative, it highlights the distinct user cases and business models adopted by developers on each platform.
Recently, Tron collaborated with Tether and TRM Labs to address financial crime within the network. This initiative led to the formation of the T3 Financial Crime Unit, aimed at assisting law enforcement in tackling criminals who misuse USDT in their activities.
Feature image from Canva, chart from TradingView
