Ethereum News Today: TRON Surpasses Ethereum as Top USDT Settlement Layer in H1 2025

TRON has emerged as a dominant settlement layer for Tether’s USDT, significantly outpacing Ethereum in stablecoin transaction volume during the first half of 2025. On-chain analytics firm CryptoQuant reported that TRON processed approximately 2.3–2.4 million daily USDT transactions, nearly seven times the volume handled by Ethereum. The total USDT supply on TRON also surpassed $80.8 billion, eclipsing Ethereum’s $73.8 billion for the first time [1].

This rapid growth is largely attributed to TRON’s gasless transaction model, which allows users to conduct transfers without paying fees. According to CryptoQuant, 75% of TRON’s activity in H1 2025 involved fee-free transactions, a significant increase from 60% in late 2023. This model relies on staked resources or app-level sponsorship, which subsidize transaction costs for end-users, making the network particularly appealing for everyday and peer-to-peer transactions [1].

The network’s adoption is further supported by high throughput and low costs, characteristics that have driven increased user engagement. In May 2025, TRON processed 273 million transactions, the second-highest in its history, with active addresses reaching 28.7 million in June—its highest since mid-2023. Meanwhile, the average user executed 10.5 transactions per month, the highest rate in two years [1]. Despite many users not paying fees, the network still generated $308 million in fees in June, likely driven by enterprise users and resource-intensive decentralized applications (dApps) [1].

TRON’s dominance in the stablecoin space is further reflected in the distribution of USDT transactions. During H1 2025, USDT accounted for 98% of the top 10 token transfers on the network, with a total of 384 million movements recorded. Notably, the majority of USDT on TRON is now held off centralized exchanges, with the share of CEX-held supply falling from 46% in early 2023 to just 13% today. This shift indicates that users are increasingly utilizing TRON for decentralized finance (DeFi) protocols, lending/borrowing, cross-border remittances, and peer-to-peer payments [1].

While TRON’s DeFi ecosystem is expanding, it remains significantly smaller and less complex than those of Ethereum or Solana. However, there are signs of maturation. SunSwap, TRON’s decentralized exchange, recorded wTRX swap volumes exceeding $3.8 billion in May, with transaction counts rising well above 2024 averages. The platform also saw a diversification in trading pairs, as wTRX’s dominance in swaps declined from 98% to 70%, paving the way for stablecoin- and memecoin-based activity [1].

Lending protocol JustLend also reported a 23% increase in borrowing transactions, largely driven by stablecoins, while daily deposit volumes tripled since January, reaching a peak of $740 million in April [1]. These developments indicate that TRON is moving beyond simple transfers and into more complex financial use cases, though it still has a long way to go compared to more mature blockchain ecosystems.

TRON’s rise is not due to technological superiority alone, but to a strategic tradeoff: low fees and gasless transactions have made the network particularly attractive for stablecoin users, especially in emerging markets and informal financial systems. However, the network’s long-term sustainability remains in question. Critics highlight the centralization of governance and the limited complexity of TRON’s DeFi offerings as potential barriers to broader adoption. Additionally, much of the usage appears to stem from repetitive or automated activity rather than diverse, active engagement, raising doubts about the depth of network health [1].

TRON’s success with USDT has established it as a key player in the stablecoin market, but the challenge ahead lies in building a robust, decentralized ecosystem that can sustain growth beyond its current reliance on Tether. As the network continues to evolve, the extent to which it can expand its utility and developer activity will be critical in determining whether this dominance is a passing trend or a lasting shift in blockchain infrastructure.

Source:

[1] TRON becomes primary settlement layer for Tether’s USDT – https://coinmarketcap.com/community/articles/688b94012a5e9263651f740b/