Data shows that Tether USDT is now settled using TRON as the primary layer.

TRON is now ahead of Ethereum when it comes to stablecoins. It processes nearly seven times as many Tether transactions per day and will surpass $80 billion by the middle of 2025. Gasless transactions and lower fees appear to have fueled the growth, although concerns still persist.

TRONTRXEthereum is no longer the clear underdog when it comes to blockchain applications. In one crucial metric, stablecoins activity.

CryptoQuant’s recent on-chain report suggests TRON is now the dominant settlement layer (USDT) for Tether.USDTThe largest stablecoin By market capitalization

It processed nearly seven times as many USDT transactions per day in the first six months of 2025 than Ethereum.ETHThe report states that the total supply of USDT in TRON has risen to $80.8 Billion, surpassing Ethereum’s 73.8 Billion for the first. TRON’s USDT total supply soared to $80.8billion, exceeding Ethereum’s $73.8billion for the first.

“TRON positioned itself as the preferred network for the use of USDT for day-to-day and P2P transactions due to its high throughput and low transaction cost. This is why there is higher USDT transfer activity on TRON than on Ethereum,” Julio Moreno is head of Research at CryptoQuant. He made a statement for crypto.news.

TRON may be successful because of a decision made in the design phase that other chains avoided. Gasless transactions are where fees for users do not apply, as costs can be covered through sponsorships or staked resources. CryptoQuant reports that 75% of TRON’s activity was free for users in H1 2020, up from 60 % in 2023. According to CryptoQuant, the model that allows wallets or exchanges or dApps to subsidise transaction costs through TRX sponsorship or staking has played an important role in driving adoption.

This bet is paying off. TRON has processed the 273 million transactions, second in history. In June, active addresses reached 28,7 millions, a record high not seen since 2023. In addition, users averaged 10.5 monthly transactions, which is the highest level in over two years.

Despite most users paying nothing, the network still generated $308 million in fees in June — a record high — suggesting enterprise users or dApps with higher resource needs may be making up the difference.

Stablecoin Machine

TRON’s hold on the stablecoin markets appears to be stronger than ever. USDT accounted for 98% (totaling 384,000,000 movements) of the 10 top token transfers made on TRON in the first half 2025.

Moreno stated that the majority of USDT held on TRON does not come from centralized exchanges. The CEX share has fallen dramatically, falling from 46% at the beginning of 2023 to only 13% now. “Users increasingly leverage TRON for DeFi protocols, lending/borrowing, cross‑border remittances or P2P payments rather than merely parking funds on centralized venues,” He said.

TRON’s dominance of stablecoin usage could also be a reflection of a more pragmatic focus. TRON, unlike Ethereum which is used mostly for smart contracts, experimentation and complex smart contract, has found its niche with fast and low-cost transfers. This applies to emerging markets, informal finance and other areas.

While dominance is important, it doesn’t always equate with network health. This may be because a large portion of usage comes from automated or repetitive transactions as opposed to active and diverse engagement.

DeFi continues to expand, but at a slow pace

TRON decentralized financial activity has not reached the levels of Ethereum yet, but there are signs that it’s maturing. SunSwap is its decentralized trading platform, which saw wTRX monthly swap volumes reach $3.8billion in May. Transaction counts are significantly higher than averages for 2024. SunSwap’s decentralized exchange saw monthly wTRX swap volumes top $3.8 billion in May, with transaction counts significantly higher than 2024 averages.

JustLend’s protocol for lending, TRON, saw an increase of 23% in the number of borrowing transactions. This was largely due to stablecoins. The daily deposits on JustLend have tripled in volume since January and peaked at $740,000,000 in April.

This suggests that TRON is moving beyond just simple transfers. TRON’s DeFi is smaller, less complicated, and more limited than Ethereum’s and Solana’s. have pointed TRON architecture is dominated by centralized management.

The data shows that TRON is gaining real momentum, but the reason for its dominance in USDT transactions has more to do with tradeoffs than pure technical superiority. Low fees and gasless transaction have helped make the network appealing, particularly to stablecoin holders who live in areas where traditional banking services are limited.

TRON is still uncertain about whether it can maintain this growth without heavily relying on USDT. Its broader ecosystem — governance, developer activity, novel dApps — still trails behind Ethereum and other platforms.