- Tether CTO Paolo Ardoino discussed high USDT transaction volume on Tron.
- Ardoino attributes Tron’s popularity to its early market presence and low fees.
- USDT’s market capitalization is currently $86,155,638,841, according to CoinGecko.
In a recent conversation with Scott Melker, also known as the Wolf of All Streets, Paolo Ardoino, the Chief Technology Officer of Tether, discussed the unexpected high transaction volume of Tether’s stablecoin, USDT, on the Tron blockchain network.
Ardoino pointed out that a considerable portion of USDT volume occurs on Tron, a platform that doesn’t garner much attention. He proposed that users gravitate towards Tron because it provides swift and cost-effective transactions when they wish to engage in digital dollar trading.
“Every time I observe the trading volume of USDT, I am invariably astonished to see that most of it is taking place on Tron,” stated Melker. He further noted that, ultimately, the primary concerns for users are transaction speed, cost, and the utilization of USDT for transactions.
Ardoino asserts that the bulk of USDT transactions are primarily conducted on centralized exchanges. However, some of these transactions also occur on blockchains such as Tron, which operate outside of these centralized platforms.
Ardoino asserts that Tron’s popularity for USDT can be attributed to its early market presence with layer 2 solutions preceding Ethereum. He pointed out that Tron has enjoyed a “four-year first mover advantage” since its inception in 2018, in contrast to Ethereum’s layer 2 projects, such as Optimism and Arbitrum, which were introduced at a later stage.
“Utilizing it is straightforward, quick, and cost-effective. Tron had a four-year head start; we are aware that a team was working on Tron in 2018,” stated Ardoino. “Tron had a four-year lead before introducing the first layer two on Ethereum.”
Ardoino asserts that Tron has gained a significant advantage in blockchain due to its early scaling and minimal transaction fees, making it a preferred choice for high-speed, high-throughput projects like USDT. However, some critics contend that Tron’s achievements are overstated. Despite this, the network effects of Tron continue to attract stablecoin usage.
USDT, a stablecoin tied to the value of the US dollar, is widely utilized in cryptocurrency trading and transactions. Tether, the issuer of USDT, operates on multiple blockchains, such as Ethereum and Tron, among others. As the most significant stablecoin in the market, USDT’s market capitalization is currently $86,155,638,841, as reported by CoinGecko.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
