Why is Tron's Expansion plan facing an impending threat?
TRON [TRX], a blockchain network, shared a report on its recent developments. One of the developments was its emerging presence in the stablecoin market.
KEY TAKEAWAYS
- Tether now has a record-high circulating supply of TRON surpassing $44 billion
- Despite being sued Tron was able to recover its market value
Tether [USDT], the biggest stablecoin by market cap, now has the highest circulating supply on TRON, which surpassed 44 billion as per Tronscan.
In addition, the data from DeFilLama indicates that TRON’s total stablecoin market cap rose by 5%. Unlike Ethereum which had the highest stablecoin market cap but experience a decline of only 2.3%.
Are stablecoins driving TRON’s expansion?
TRON gained popularity after the USDC de-pegging incident that shook the wider cryptocurrency market. Fortunately, Tron witnessed a peak of $1.17 billion in stablecoin inflows the day after the incident.
Moreover, Justin Sun the founder of Tron was prompted by the significant growth to aim for a stablecoin market cap of $60 million. Stablecoins-dominated trading has fueled the growth of the entire network.
The revenue generated on the chain has increased by 70% and the daily user base has expanded by 21% as of 24 March, since the stablecoin disruption. Thus pushing Tron to second best performing chain in the last week.
TRX’s strategy for future
However, as per the data from DeFilLama, there is a concern about the liquidity on the Tron network as the total value locked (TVL) in its smart contracts has decreased by 3%, since March 2022.
The reason for the drop could be because SEC initiated a probe against Tron foundation and Justin Sun over charges of selling unregistered securities.
The news caused TRX’s price to drop by 13%, but it soon recovered to its current value. In the last 24 hours, over 18 million TRX tokens were removed from circulation. This resulted in a net decrease in the circulating supply of TRX by 13.4 million.