Tether, a leading stablecoin issuer, has minted $1 billion in Tether-USD tokens (USDt) on the Tron network, paying zero transaction fees in the process, according to blockchain analytics firm Arkham Intelligence.
Zero-Fee USDt Transactions on Tron
On November 14, Tether transferred the newly minted USDt from a “black hole address” on Tron to its multisignature wallet, identified by the prefix “TBPxh.” Shortly after, the funds were moved to Tether’s treasury without incurring any fees. This seamless, cost-free process highlights the advantages of using Tron for high-volume transactions.
Tron’s low transaction fees make it a preferred choice for stablecoin operations, particularly in developing countries where high network fees can reduce the value of remittances or payments.
USDt Supply and Tron’s Role in the Stablecoin Market
As of now, Tether’s transparency page indicates that $62.7 billion worth of USDt is authorized on the Tron network, closely rivaling Ethereum’s $62.9 billion USDt supply. Despite Ethereum’s larger ecosystem, Tron has achieved near parity in USDt circulation, showcasing its growing importance in the stablecoin market.
Tron’s appeal has driven significant revenue for the blockchain, generating $577 million in Q3 2024 alone.
A Rising Star in Stablecoins
In August 2024, Tron became the second-largest blockchain ecosystem for stablecoins, securing 37.9% of the total market share compared to Ethereum’s dominant 55.7%. During that period, Tether minted an additional $1 billion USDt on Tron, intended to replenish its reserves.
Tether’s CEO, Paolo Ardoino, clarified that these tokens are authorized but not immediately issued. Instead, they remain in Tether’s inventory until a request for issuance is made, at which point they are distributed for trading.
Stablecoin Supply and Market Sentiment
Stablecoin supply is closely watched as a key indicator of market sentiment. A rise in newly minted tokens often signals bullish market activity, as traders anticipate price movements. Conversely, a decline in stablecoin supply may reflect reduced trading interest and lower market activity.
Tron’s combination of low fees and efficient processing has cemented its status as a top choice for stablecoin issuers like Tether. As the stablecoin market evolves, Tron’s role is expected to grow, particularly in regions where cost-effective transactions are critical.
