Tron FAQ :: Why Did TRON Gain Popularity In USDT
One of the biggest successes of the TRON network has been the popular USDT main coin, which launched in April 2019 and was only traded on the Ethereum and Omni networks at the time.
Extremely low transfer fees have made TRON-based USDT a very popular tool for transferring value between centralized exchanges and private cryptocurrencies.
The average cost of transferring USDT TRC-20 is less than $1, while trading stepper coins on the Ethereum network costs from $15 up to $30 or more.
As of April 2022, the capitalization of USDT-TRON exceeded $41 billion, which is almost 50% of the total supply of this stablecoin on all blockchains, thanks to the popularity of USDT, the total number of TRON accounts has exceeded 109 million as of September 2022.
What projects are included in the TRON ecosystem?
Compared to competing blockchain platforms, TRON has a rather meager list of DeFi applications deployed on this network. Only 10 protocols are running on the network, according to Defillama.
In addition, the TRON ecosystem is almost centralized, and most of the tools and services are developed under the management and control of the TRON Foundation.
Some of the biggest DeFi services include:
- JustLend lending protocol;
- SunSwap, decentralized exchange;
- USDJ from stablecoin.
Together, these three protocols account for over 90% of the total liquidity of the TRON blockchain.
Despite the small number of applications, TRON consistently ranks among the top 5 networks in terms of blockchain liquidity.
How reliable is the USDD algorithmic stablecoin?
In May 2022, Justin Sun launched the USDD Algorithmic Stablecoin pegged to the US dollar. The issue of the asset was launched simultaneously on the TRON, Ethereum and BNB on-chain blockchains.
USDD is pegged to the US dollar by the TRON DAO Reserve (TDR), co-founded by Alameda Research, Amber Group, Poloniex, Ankr and Mirana Ventures. The fund consists of liquid assets such as USDT and USDC stablecoins, bitcoin and TRX.
Following the loss of the UST stablecoin peg and the collapse of the Terra ecosystem, the USDD team decided to increase USDD resilience by introducing an excess reserve ratio. Despite this, the stablecoin has remained pegged to the US dollar.
According to the USDD website, by the end of August 2022, the reserve coverage for stablecoin has exceeded 300%, and prices are hovering around $1.
Issuing USDD burns the equivalent value in TRX coins. As of September 2022, over 730 million USDD have been minted and almost 9 billion TRX have been burned (9% of the total coin supply). TRX is in the top 10 stackable coins by market cap.
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You have given us a reason Tron gained popularity in USDT.
Thank you very much for sharing this with us 😊👍
I was glad to convey information to the members of our friendly community!
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