The Tron network (TRX) has just taken a symbolic step in its journey with the issuance of 30 billion USDT on its blockchain. According to Justin Sun’s tweet, the blockchain now manages USDT’s main pool on a given network. In addition, demand for USDT and stablecoins is growing, in the face of uncertainty in the price of bitcoin.
Tron, the favorite blockchain for USDT users
Tether’s USDT is a 1: 1 US dollar-backed stablecoin, which means it’s always worth $ 1. The USDT is issued several other blockchains: Algorand, Bitcoin Cash, Eos, Ethereum, Liquid Network, Omni, Solana and Tron (and most recently Avalanche), each with varying fees and settlement speeds.
The primary issuer of USDT, for much of its existence, has been the Ethereum network. However, its slowness (15 transactions per second) and high fees – an average of $ 20, reaching over $ 200 in some cases – led users to turn to other blockchains.
In mid-April 2021, the Tron network became the leading issuer of USDT after frantic growth at the start of the year. The latter claims a transfer speed of 2,000 transactions per second and charges a fraction of a cent in fees, which allowed it to reach the threshold of 30 billion USDT issued.
The announcement comes shortly after Tether shared, for the first time since 2014, the composition of its reserves. As discussed above, USDT is a dollar-backed stablecoin, which means that the issuer must have a reserve dollar for each USDT issued. According to the latest information, Tether has sufficient reserves to secure the USDT in circulation on paper. However, the reserves only include a little cash and the market value could be lower than the book value.