Tron (TRX) has recently emerged as the leading blockchain network for stablecoin transactions, overtaking Ethereum in USDT transfer volume and market capitalization. According to data shared by CryptoQuant and Lookonchain, Tron's USDT circulating supply has reached approximately $75.8 billion, with a daily USDT transaction volume of $23.4 billion, surpassing Ethereum’s daily volume and total stablecoin market cap.
This growing dominance is attributed to Tron's lower transaction fees and faster settlement times, making it a preferred choice for users and traders. Over the past seven days, Tron increased its USDT/USDC stablecoin volume by $2.12 billion, while Ethereum lost $2.44 billion in the same period. As a result, Tron’s stablecoin market cap rose to $73.8 billion, edging past Ethereum’s $71.9 billion.
The rise in stablecoin activity on Tron has driven increased network usage, which in turn fuels demand for TRX—the token used to pay transaction fees on the network. Tron processes around 2.4 million USDT transactions daily, compared to Ethereum's 284,000. This increased demand is reflected in TRX’s trading volume rising by over 60% in recent days.
Despite recent selling pressure from whale holders, TRX price has remained stable, trading near $0.265 with trading volumes up by 69.18% to approximately $938 million. Technical indicators show a bullish momentum with the formation of a "golden cross," where the 50-day Simple Moving Average (SMA) crossed above the 100-day SMA. This pattern usually signals further upward price movement.
Analysts suggest that sustained trading volume and network utility growth could enable TRX to breach its resistance at $0.28 and potentially rally towards $0.30 to $0.35. Additionally, Tether’s expanding U.S. Treasury holdings, as noted by crypto analyst Willy Woo, backing a significant portion of USDT reserves, may strengthen stablecoin demand and indirectly benefit TRX as the dominant transaction medium.
Overall, this stablecoin milestone reflects a major shift in the crypto market landscape, with Tron gaining preference over Ethereum for high-volume stablecoin transfers, enhancing its ecosystem and positively influencing TRX price dynamics.