Tron Network Hosts 40% of 5 Million Weekly Stablecoin Users as of H1 2023

A recent study suggests that the Tron Network was home to about 40% of the 5 million weekly stablecoin users as of the first half of 2023.

This stat comes from a study by Peter Johnson, the Co-Head of Venture at Brevan Howard Digital, and Sai Nimmagadda, Quant trader at Brevan Howard Digital. The research spans stablecoin network activity from 2022 through 2023.

The #TRON network is dominating the scene with our performance. ?

This study from @TheChicagoVC and @0xNsai offers insights about the top fiat-backed #stablecoins, focusing on non-speculative use, covering key insights across various #blockchains and L2 solutions. ?⛓️

?⬇️ pic.twitter.com/dZD77KMmi9

— TRON DAO (@trondao) October 29, 2023

Stablecoin Trends and the Tron Potential

Tron Network, founded by Justin Sun, is a protocol that supports stablecoin issuance. Over the past few years, it evolved as a dominant competitor to Ethereum, per stablecoin transaction activities.

According to the report, in 2022, stablecoins on networks surpassed $11 trillion in volume, with weekly figures ranging from $150 billion to $200 billion. 

This figure almost matches Visa’s transaction volume and makes up about 14% of the ACH and 1% of Fedwire payments. Of this humongous figure, Tron processes approximately $70 billion in volume weekly. 

Riding on this impressive stride, the protocol expressed confidence in its ability to hit $3.64 trillion in volume this year. Notably, Tether (USDT) makes up the biggest traction of stablecoins operating on Tron. However, Tron has dabbled into other stablecoins in recent times.

Last December, TrueUSD launched TCNH, a Tron-based stablecoin pegged to the Chinese Yuan. TCNH joins the algorithmic stablecoin USDD that the Tron DAO provides reserves for. 

While there are some controversies surrounding its stablecoin administration, Tron DAO Reserve typically rises to the occasion to address concerns from members of its community.

Tron and Competitors

According to the report, Tron currently outpaces some key competitors, including Ethereum and Polygon, concerning its stablecoin support.

At the moment, Tron Network handles about 14 million transactions per week. By breakdown, this includes 13,996,124 for USDT, 19,514 for USDC, and 15,086 for TUSD, totaling 14,030,724 transactions. 

This places it below Binance Smart Chain’s 14,401,223 transactions but far above Ethereum and Polygon’s 1,516,495 and 3,314,240 transactions, respectively. Based on its projections, Tron DAO forecasts that the protocol will hit 728 million transactions this year.