By Bitcoinist - 5 months ago - Reading Time: 2 minutes
Tron DAO Earns $96.74 Million Revenue Mostly From USDT Transfers
In the last 30 days, Tron, a smart contract platform, generated $96.74 million in revenue from on-chain transactions, mainly from USDT. According to data shared on November 8 by @MorenoDV_ on X, there were 59 million transactions posted in the last 30 days on Tron, with the average gas fee at around $1.52.
Out of these figures, Tron generated $96.74 million, cementing the platform’s role in enabling stablecoin transactions.
Tron Is A Stablecoin Chain: Data
Tron, a public ledger co-founded by Justin Sun, is one of the most active, especially carving market share as a choice platform for protocols opting for a scalable layer-1 with relatively low trading fees. Over the years, Tron, though supporting the deployment of smart contracts like Ethereum, has cemented its role as the lead portal for stablecoin transfers.
According to Token Terminal data, at least 93% of the over 59 million transactions posted on the network were USDT. In Tron, USDT complies with the TRC-20 token standard, which means it can be sent and received using any non-custodial wallet that supports the TRC-20 standard, like TronLink, Trust Wallet, and MetaMask.
There are multiple reasons why Tron is popular for stablecoin transfers, especially enabling USDT TRC-20 token transfers. Tron, unlike Ethereum, is more scalable, so on-chain fees are relatively lower.
The Tron network has a higher throughput and can support intensive projects that would otherwise require more “gas” in Ethereum. For comparison, the current gas fee on Ethereum stands at around $4.19, while the same transaction on Tron costs between $1.62 and $1.93.
Unlike Ethereum’s proof-of-stake consensus method, Tron relies on the delegated Proof-of-Stake system, where 27 super representatives approve transactions and secure the network. Additionally, the Tron Foundation oversees the Tron blockchain and supports stablecoin development.
Tron’s USDD And Tether’s Investment
In 2022, Tron launched USDD, an over-collateralized decentralized stablecoin backed by the Tron DAO reserve. The Tron DAO reserve is a decentralized vault governed by TRX holders whose goal is to “safeguard the overall blockchain industry and crypto market, prevent panic trading caused by financial crises, and mitigate severe economic downturns.” USDD provides an alternative to DAI, an algorithmic stablecoin issued by Maker.
In early November, Tether, the issuer of USDT, invested $610 million in Northern Data AG, a Bitcoin miner in Germany. Part of the funds received will be used to purchase more mining gear, increasing the firm’s capacity. Notably, funds extended won’t be part of Tether’s stablecoin consolidated reserves, as explained by CEO Paolo Ardoino.
Original source: Bitcoinist