Introduction
If you mention TRX to the vast majority of people in the cryptocurrency space, they might laugh it off with a dismissive comment. Yet, quietly and steadily, Tron has evolved into one of the most actively used blockchains for stablecoin transactions. While many overlook its potential, the data tells a different story—one of growing adoption and practical utility.
TRX has been performing robustly in the market, especially when compared to other major cryptocurrencies. Its role isn’t just limited to trading; it’s becoming a foundational layer for global dollar settlement.
In light of increasing interest in real-world asset (RWA) applications, projects that solve tangible problems are gaining attention. While there’s no shortage of decentralized exchanges with minor tweaks, a global network facilitating offshore dollar settlements stands out. With more than half of all USDT supply residing on Tron and significant transaction activity, it's positioning itself as a viable global settlement solution.
Key Data Insights
Tron recently surpassed Ethereum in stablecoin transfer volume, making it the largest blockchain by weekly on-chain stablecoin transactions—currently hovering around $70 billion.
Approximately 40% of all active addresses sending stablecoins on-chain are on the Tron network.
The number of wallets holding USDT on Tron has nearly doubled since the beginning of the year, growing from around 16 million to over 32 million.
Total stablecoin supply on Tron is approaching an all-time high, painting a very different picture from Ethereum, where supply has seen declines.
Contrary to the popular belief that Tron is overly centralized, data shows that about 50% of USDT on Tron is held outside the top 500 accounts. This indicates broad distribution and real-world usage.
Stablecoin usage has historically had low correlation with general crypto trading volumes, suggesting it is driven more by practical settlement needs than speculation. Since centralized exchange volumes peaked, CEX trading is down about 60%, while stablecoin transaction volume has declined only 10%. Meanwhile, weekly active stablecoin addresses and weekly stablecoin transfers have increased by roughly 25%.
Understanding stUSDT and RWA Integration
stUSDT was launched in July 2023 as a real-world asset market built on Tron. It allows users to exchange USDT for stUSDT and earn rebase rewards—currently around 4.73% APY. The underlying RWA strategy isn’t explicitly detailed, but it likely involves low-risk, highly-rated assets such as short-term U.S. government securities, similar to strategies used by MakerDAO or Frax Finance.
stUSDT is operated by RWA DAO, which is hosted by JustLend DAO. The only noticeable fee is a 0.1% promotion fee applied when unstaking, which goes to RWA DAO. Current supply sits at $724 million on Ethereum and $2.2 billion on Tron.
While stUSDT doesn’t directly accrue value to TRX, it provides a compelling reason for users to keep USDT within the Tron ecosystem, strengthening its use case for dollar-denominated savings and settlements.
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The Role of TRX in the Tron Ecosystem
Tron is a blockchain that uses a delegated proof-of-stake consensus mechanism, with TRX as the native token. It supports smart contracts via the Tron Virtual Machine, which is compatible with the Ethereum Virtual Machine (EVM).
Instead of a gas model, Tron uses a resource system based on "Energy" and "Bandwidth." Bandwidth accounts for the size of transaction data stored on the chain, while Energy measures the computational effort required to execute operations. All transactions consume these resources.
Bandwidth points are distributed for free every 24 hours to activated accounts and can also be obtained by staking TRX. Energy can only be acquired through staking. Currently, staking TRX offers about 4% annual returns, with approximately 52% of all TRX already staked.
While the system is dynamic and complex, the core takeaway is that increased network usage leads to more TRX being purchased and burned in the short term—and staked for the long term. When Energy demand exceeds supply, TRX is burned. Similarly, if users lack enough Bandwidth, a small fee per transaction is applied and burned.
The USDT contract is the largest consumer of Energy on the network. Therefore, growth in USDT usage directly creates positive supply dynamics for TRX, incentivizing holding and staking.
Additionally, new users must pay a 1 TRX account activation fee, further supporting token utility and deflationary pressure.
With Energy demand consistently exceeding supply, high network usage translates into continuous fee generation and a deflationary state for TRX.
Conclusion and Potential Risks
Many consider stablecoins to be cryptocurrency’s "killer app," and Tron appears to be the network where this application is achieving mass adoption. With a market valuation of around $8 billion, TRX isn’t overvalued relative to its utility and is well-positioned to benefit from expanding global stablecoin use.
That said, investing in TRX is not without risks. The most significant is its dependency on Tether (USDT). Tether has long been controversial, though the company has plans to begin publishing real-time reserve data in the coming year, increase technical investments, and engage more transparently with regulators.
Another risk is USDD, Tron’s native stablecoin, which has a supply of around $726 million. It is backed by overcollateralization with TRX and BTC, but if those assets fall significantly in value, it could trigger a liquidation event and subsequent sell-off in TRX. That said, if TRX or BTC appreciate, the system could become even more secure over time.
Ultimately, the data suggests that cryptocurrency infrastructure is gradually replacing traditional systems for cross-border payments and dollar settlement—especially for underserved populations. For investors, it may be as simple as holding the token that facilitates this global shift.
Frequently Asked Questions
What makes Tron different from other blockchains?
Tron uses a resource model based on Bandwidth and Energy instead of gas fees. It’s optimized for high-throughput transactions, especially stablecoin transfers, making it ideal for payments and settlements.
How does staking TRX work?
Users can stake TRX to earn Energy and Bandwidth, which are needed to perform transactions and execute smart contracts. Staking also provides annual returns of approximately 4%, and it supports network security and deflationary mechanics.
Is Tron centralized?
While often criticized for centralization, on-chain data shows that USDT on Tron is widely distributed, with about 50% of supply held outside the top 500 accounts. The network is secured by a decentralized set of super representatives.
What is stUSDT?
stUSDT is a yield-bearing token backed by real-world assets. Users can swap USDT for stUSDT and earn passive income through rebase rewards, similar to interest from traditional savings instruments.
What are the risks of holding TRX?
Key risks include regulatory action affecting Tether (USDT), potential USDD depegging or liquidation events, and overall cryptocurrency market volatility. It’s important to monitor Tether’s transparency initiatives and market conditions.
Can I use Tron for everyday transactions?
Yes. Tron is fast and cost-effective, making it suitable for remittances, payments, and transfers. Its growing adoption and focus on stablecoins enhance its practicality for real-world use.