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- Tron’s USDT transactions surged to $110 billion weekly, topping Ethereum, due to low fees and easy access.
- TRON’s price dropped by 1% in the last 24 hours, underperforming the broader cryptocurrency market.
Tron, the blockchain network renowned for its low transaction fees, has recently witnessed a significant surge in USDT (Tether) transactions, surpassing $110 billion in weekly volume during the first week of April. Blockchain analytics firm IntoTheBlock reported this milestone, which marks a notable increase compared to USDT settlements on other networks, particularly Ethereum.
The weekly USDT transaction volume on @trondao hit $110B last week, more than 2x what was settled on Ethereum.
Thanks to its low network fees, USDT on Tron has become a way for many people around the world to access the US dollar. pic.twitter.com/G2yPcWqjDw
— IntoTheBlock (@intotheblock) April 10, 2024
IntoTheBlock attributed Tron’s dominance in USDT transactions to its favorable ecosystem, characterized by minimal fees and easy access to the United States dollar-backed stablecoin. The network’s efficiency has facilitated a seamless flow of transactions, drawing users seeking cost-effective solutions. Tether’s market capitalization recently soared to $100 billion, underscoring its prominence in stablecoin.
Despite being available across 15 blockchains and protocols, a significant portion of USDT supply resides within the Tron network, reflecting its strong foothold in the ecosystem.
Tron’s USDT Dominance Attracts Regulatory Scrutiny
While Tron’s dominance in USDT transactions underscores its appeal to users seeking cost-effective and efficient transactions, it has also drawn attention from regulators due to concerns over illicit activities. As previously reported by Crypto News Flash, Tron accounted for 45% of illegal transaction volumes in 2023, surpassing Ethereum and Bitcoin. Criminal entities, including cybercriminals, North Korean hackers, terrorist financiers, and drug sellers, favor Tron for its low fees and minimal price fluctuations, facilitating the exchange of stolen and illicit assets, often converted to USDT.
The rising use of USDT for illicit purposes has prompted regulatory bodies to intensify scrutiny. In January, a United Nations report highlighted USDT’s role in money laundering and Southeast Asian scams. Tether, the issuer of USDT, refuted these claims, emphasizing the stablecoin’s positive impact while expressing disappointment over its alleged association with illicit activities.
Bearish Sentiment Dominates TRON Markets
Tron (TRX), one of the prominent cryptocurrencies in the market, has been witnessing a bearish sentiment despite the broader cryptocurrency market’s performance. Currently trading at $0.1199, TRX has experienced a 1% decline in the last 24 hours, underperforming against the total crypto market cap, which decreased by 0.68% during the same period. TRX also recorded a 0.55% loss against Bitcoin (BTC), the world’s largest cryptocurrency.
Despite the bearish sentiment, TRON’s price has garnered bullish cues primarily from investors, as indicated by the funding rate of the asset. Funding rate, a fee exchanged between traders to balance the market, has seen a notable increase in the last 24 hours, suggesting a surge in long contracts and bullish bets from Tron enthusiasts.
Additionally, technical analysis indicators, such as the Moving Average Convergence Divergence (MACD), signal a potential bullish resurgence. While MACD remains negative, the receding red bars on the indicator hint at a possible upward trend, indicating buying opportunities for traders.
Investors are closely monitoring key support and resistance levels for TRON. The most crucial support levels to watch are $0.119480, $0.117859, and $0.115921, while key resistance levels include $0.123040, $0.124978, and $0.126599. These levels significantly determine the potential direction of TRX’s price movement in the near term.
Currently, 13 indicators signal a bullish prediction for TRON, while 19 indicators show a bearish forecast. With 59% of indicators favoring a negative prediction, the overall sentiment for TRX remains bearish. Despite positive funding rates indicating bullish sentiments among traders, most technical indicators suggest a potential downward trend for TRON’s price.
