USDT Supply on Tron Tops $80 Billion, Here’s the Implication for TRX Price

The Tether (USDT) stablecoin has reached a notable milestone on the TRON blockchain. Notably, the USDT supply has surpassed $80 billion.

The Tron dominance in USDT settlement is a powerful signal for the future price trajectory of the TRX token.

It also reflects the increased demand for the broader cryptocurrency market, amid improving sentiment.

Tether Becomes Most Popular Stablecoin on Tron

According to data provider Glassnode, $80 billion Tron supply represents over 50% of the USDT circulating supply.

With over half of USDT now residing on Tron, the blockchain is well-positioned to become the dominant stablecoin settlement layer.

USDT transactions on Tron have grown steadily this year, hitting $71 billion in May. This figure places USDT behind Ethereum, which hosts approximately $75 billion worth of USDT.

However, USDT has now overtaken Ethereum in net circulating supply, which is currently at $72.9 billion, according to recent updates from Tether.

Other chains, such as Solana (SOL), Aptos (APT), Toncoin (TON), and Avalanche (AVAX), have significantly smaller shares of USDT circulation compared to Tron and Ethereum.

The USDT supply for Solana is $1.8 billion, Aptos has amassed $810 million, while Toncoin has $543 million. Users prefer to use Tron for large-scale operations because it is cheap, reliable, and fast.

Adoption of USDT continued in June, with staked TRX recently accounting for 46% of all the digital currencies on the network.

This is equivalent to 43.8 billion TRX, most of which now powers the TRON ecosystem.

Why Demand for USDT is Skyrocketing

Tether leads the stablecoin market, accounting for 62.2% of the $252.7 billion stablecoin market capitalization.

Institutional and remittance use cases fuel the rising demand for USDT within the crypto market.

Another factor contributing to the rising adoption of Tether is a recently passed stablecoin bill.

This bill, the GENIUS Act, emphasizes the U.S. government’s efforts in using stablecoins to strengthen the dollar’s global dominance.

The bill has already cleared key steps in the Senate. It won a 66-32 procedural vote on May 19 and on June 2, after Democrats secured stronger consumer and anti-fraud provisions.

Tether is also forming strategic partnerships, likely contributing to increased demand for its stablecoin.

The stablecoin issuer recently collaborated with the Orionx crypto exchange to boost stablecoin adoption and digital payments.

Implications of Soaring Stablecoin Adoption for TRX

TRX, the native token of Tron, has come under the market’s radar following the soaring adoption of USDT on the network.

TRX price has risen by 0.4% over the past 24 hours, currently trading around $0.273. However, the market activity is low, as indicated by the declining trading volume.

This metric plummeted by 17.9% to $401 million.

Analysts believe the stablecoin surge could push the price of TRX higher, particularly if demand for the network continues to rise.

July historical data from Cryptorank also indicates a possible TRX surge is on the horizon.

Looking at the data shows that TRX has rallied consecutively in July over the last three years. In July 2022, 2023, and 2024, the price of TRX increased by 6.86%, 2.2%, and 3.34%, respectively.

Quarterly data also supports this trend, as TRX usually experiences gains in the second quarter.

Therefore, TRX is poised for further rallies if the positive trends in July and Q2 continue this year.

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