In May 2025, TRON surpassed Ethereum in USDT issuance, with TRC20-based Tether supply exceeding $77.7 billion—marking a pivotal shift in the stablecoin landscape. For the first time, TRON became the leading blockchain network by both total and circulating USDT volume, signaling a new era in decentralized finance and global digital payments.
This milestone isn’t just about market share—it reflects deeper technological advantages, strategic ecosystem growth, and increasing real-world adoption. While Ethereum laid the foundation for smart contract innovation, TRON has optimized for performance and cost-efficiency, making it the preferred network for stablecoin transactions and cross-border value transfer.
The Technical Edge Behind TRON’s Rise
When it comes to blockchain adoption, two factors dominate user decisions: transaction speed and cost efficiency. TRON excels in both.
TRON processes over 2,000 transactions per second (TPS), matching the throughput of traditional payment giants like Visa. Transaction finality takes only a few seconds, ensuring near-instant settlements. In contrast, Ethereum’s base layer handles around 30 TPS, often leading to congestion during peak activity—especially during NFT mints or DeFi surges.
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But speed alone isn’t enough. Cost is where TRON truly pulls ahead.
On TRON, average transaction fees remain below $0.01 (or 1u)**. With smart usage of bandwidth and energy resources—daily free bandwidth allocations and affordable energy leasing—users can reduce costs to as low as **$0.002 per transaction, or even zero under certain conditions. Frequent traders benefit most: by leasing energy instead of purchasing it outright, they cut costs by up to 80%, keeping each USDT transfer around $0.005.
Ethereum, despite upgrades like EIP-1559 and the move to proof-of-stake, still sees gas fees spike to $10–$20 per transfer during network stress—nearly 100 times more expensive than TRON for basic stablecoin movements.
In April 2025, TRON launched GasFree, a revolutionary feature that eliminates the need for native TRX to pay for transactions. Now, users can pay gas directly in USDT when transferring stablecoins—removing friction for mainstream users unfamiliar with crypto-native tokens. This lowers the entry barrier and strengthens TRON’s position as the go-to infrastructure for stablecoin-centric applications.
Behind the Scenes: Continuous Protocol Innovation
TRON’s success isn’t accidental—it stems from years of quiet but consistent technical evolution. Founded by Justin Sun in 2018, TRON’s long-term vision unfolds in four phases: Exodus, Odyssey, GreatVoyage, and StarTrek. As of May 2025, TRON is operating under GreatVoyage-v4.8.0 (Kant), reflecting its current focus on scalability and interoperability.
Key upgrades in the Kant release include:
- EIP-1153: Introduces transient storage to reduce smart contract execution costs by 35%, improving efficiency for DeFi developers.
- Prototype Sharding (EIP-4844): Enables seamless asset transfers between TRON and Ethereum Rollups, boosting cross-chain throughput to 1,500 TPS.
- EIP-5656: Optimizes memory copying in smart contracts, cutting DApp deployment time by 50%, accelerating development cycles.
These improvements may not grab headlines, but they form the backbone of a robust, future-ready blockchain—capable of supporting mass adoption without sacrificing decentralization or security.
From Stablecoin Leader to Global Financial Infrastructure
Beyond raw performance, TRON has built one of the fastest-growing ecosystems in Web3.
According to CryptoQuant’s 2024 TRON Annual Report, monthly transaction volume surged from 129.8 million in February to 239.6 million in October—an 84% increase within eight months. Total annual transactions reached 2.38 billion, underscoring strong organic demand.
By May 20, 2025, TRON hosted over 307 million accounts, a 40% year-on-year increase. Total value locked (TVL) across its DeFi protocols exceeded $23.6 billion, driven largely by stablecoin liquidity.
The dominance of TRC20-USDT (98.5% of all stablecoins on TRON) creates a powerful flywheel: every time Tether mints new USDT on TRON, liquidity floods into decentralized exchanges, lending platforms, and yield-generating protocols—automatically boosting TVL and user engagement.
Daily USDT transaction volume now averages $19 billion, fueled by demand in emerging markets for remittances, trade settlements, and inflation hedging. Countries with limited banking access increasingly rely on TRON-powered wallets for fast, low-cost international transfers.
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Strategic Expansion and Regulatory Progress
TRON’s influence extends beyond technology and usage metrics—it's gaining traction in policy and compliance circles.
In early 2025, following former U.S. President Donald Trump’s election win, TRON made headlines through its association with World Liberty Financial (WLF), a financial initiative backed by the Trump family. WLF acquired significant amounts of TRX, while its affiliated stablecoin USD1 debuted on Huobi HTX via the TRON network. Justin Sun also attended a private dinner hosted by President Trump—an unprecedented moment for any crypto founder.
While political affiliations evolve, the impact on brand visibility was immediate: global search interest in “TRON” spiked over 300%, accelerating mainstream awareness.
On the regulatory front:
- TRX has filed for a spot ETF with the U.S. SEC, which, if approved, would be the first crypto ETF supporting staking rewards.
- TRON collaborates with Tether’s T3 anti-financial crime unit and the government of Dominica to implement FATF-compliant travel rule monitoring systems—proving its commitment to regulated innovation.
As Messari noted in its Crypto Thesis 2024 report:
“TRON offers mature infrastructure focused on financial inclusion. Its role in reshaping global payment systems is both strategic and scalable.”
Frequently Asked Questions (FAQ)
Q: Why is USDT cheaper to transfer on TRON than Ethereum?
A: TRON uses a resource-based model (bandwidth and energy) rather than competitive gas bidding. Most users get free daily bandwidth, and energy can be leased at low cost—keeping fees under $0.01.
Q: Is TRON decentralized enough for enterprise use?
A: While more centralized than some Layer 1s, TRON balances performance with practical decentralization through its DPoS consensus and growing validator diversity—making it ideal for high-volume financial applications.
Q: Can other stablecoins compete with USDT on TRON?
A: Currently, USDT dominates with 98.5% market share on TRON due to liquidity and network effects. However, new entrants like USD1 are beginning to gain traction through strategic partnerships.
Q: What is GasFree and how does it work?
A: GasFree allows users to pay transaction fees directly in USDT instead of TRX when moving stablecoins—removing the need to hold multiple tokens and simplifying UX for newcomers.
Q: How does TRON handle cross-chain transfers?
A: Through EIP-4844-based prototype sharding, TRON supports interoperability with Ethereum Rollups, enabling faster and cheaper bridging of assets between ecosystems.
Q: Is TRON safe for large-scale financial operations?
A: Yes. With over $23.6 billion in TVL, compliance initiatives with FATF standards, and institutional-grade infrastructure, TRON is increasingly trusted by enterprises and governments alike.
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The Road Ahead: Bridging Web3 and Traditional Finance
TRON’s rise as the top USDT issuance chain is more than a technical victory—it's a signal of changing tides in global finance. By focusing on low cost, high throughput, and real-world utility, TRON has positioned itself as a critical bridge between traditional financial systems and the decentralized future.
Its vision—to become the core settlement layer for global transactions—is no longer speculative. With AI integration plans, expanding DeFi ecosystems, and growing regulatory engagement, TRON is building the infrastructure for a more inclusive financial world.
As blockchain adoption accelerates, networks that prioritize accessibility and efficiency will lead. TRON hasn’t just caught up—it has redefined what scalability means in the age of mass digital finance.