Why is Tron's Expansion plan facing an impending threat?
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Why is Tron's Expansion plan facing an impending threat?

written by John Murphy | March 27, 2023

TRON [TRX], a blockchain network, shared a report on its recent developments. One of the developments was its emerging presence in the stablecoin market.


  • 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.

Source: DeFilLama

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.