Traders may be searching for faster and cheaper transactions than Ethereum, which could explain the rise. The accomplishment occurred just one day after Circle announced the listing of USDC on Tron. According to Circle’s website, one of the stated objectives is to “enable [USDC] expansion in Asia and around the world.”
The first USDC transfer on Tron was on June 11th, according to blockchain statistics. The total amount of USDC (USD Coin) in circulation on the Tron blockchain has topped 108 million in less than a month. This could be yet another indicator that cryptocurrency traders are increasingly flocking to blockchains that provide lower transaction fees and faster speeds than Ethereum. USDC is a stablecoin that is tied one-to-one to the US dollar, with each token redeemable for the same amount of dollars.
Justin Sun’s Tron blockchain has already gained traction due to the rapid expansion of USDT (tether), the largest stablecoin by asset cap, on the network. Tron has more USDT (tether) than Ethereum, the network of ETH (ethereum), according to CoinDesk. This is due to the fact that traders choose blockchains that allow faster and cheaper transactions. According to CoinGecko data, while USDT (tether) is the most traded cryptocurrency, USDC’s use of decentralized finance (DeFi) is rapidly expanding. Meanwhile, according to data from Glassnode, roughly half of the USDC supply is currently employed in smart contracts.
The major distinction between how USDC (USD Coin) is used on Ethereum and how it is used on Tron is that it is largely utilized for inter-exchange transfers. He pointed out that the top 10 addresses on Tron hold approximately all of the USDC supply. The expansion of USDT (tether) and now USDC on Tron could indicate that “a lot of exchanges are just moving stablecoins over to Tron instead of Ethereum to save fees,” according to Watkins.
Data from Glassnode indicates that about half of USDC supply is currently being used in rational contracts.