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Tuesday, May 28, 2024

USDT Transaction Volume Soars on TRON DAO, Hits 2 Million Daily

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There has been a remarkable surge in USDT transactions within the TRON ecosystem via TronDAO, showing a substantial increase since early February, now averaging over two million transactions daily.

According to the latest data compiled by IntotheBlock, the surge brings the transaction volume close to the peak observed in January 2023.

USDT Transaction Volume Soars on TRON DAO

For the uninitiated, TRON DAO is a decentralized autonomous organization connected to a blockchain ecosystem. USDT, complying with the TRC-20 token standard on TRON, allows transfers using various non-custodial wallets like TronLink, Trust Wallet, and MetaMask.

TRON’s popularity for stablecoin transfers, particularly with USDT TRC-20 tokens, stems from its scalability advantage over Ethereum, resulting in comparatively lower on-chain fees.

With its higher throughput capacity, the TRON network supports intensive projects without the significant “gas” requirements associated with Ethereum, making it an increasingly favored platform for such transactions.

However, Tether, being a controversial entity in the eyes of several law enforcement agencies, has also brought its stablecoin, USDT, under scrutiny.

Recent reports, including a United Nations study earlier this year, suggest a rising trend of money laundering and fraudulent activities in Southeast Asia utilizing USDT for payments and fund transfers, particularly via its TRC-20 protocol.

However, Justin Sun and TRON DAO have refuted these allegations, with the latter stating active collaboration with on-chain forensic partners to share transaction-related information and dismiss such claims.

USDT Expansion

Despite the intense scrutiny and backlash, USDT has grown significantly in tandem with market recovery. The stablecoin broke above a milestone of $100 billion market cap earlier this month.

In terms of expansion, Tether recently announced the launch of USDT on the Celo blockchain, making it the 15 network to accommodate the leading stablecoin, after Ethereum, TRON, Polygon, Avalanche, and Algorand, among others.

Meanwhile, Tether has intensified its efforts to focus on artificial intelligence (AI) this year. Key areas of focus include the development of open-source, multimodal AI products to establish new industry benchmarks. Additionally, the crypto firm intends to collaborate with various entities to integrate AI solutions into market-oriented products, addressing real-world challenges.

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