TRON's 70% USDT Shift to Off-Chain Drives $70 Billion DeFi Growth

TRON’s blockchain ecosystem has undergone a notable transformation, with its network activity expanding significantly beyond traditional USDT transfers. While historically recognized for facilitating low-cost stablecoin movements, the platform is now witnessing heightened engagement with decentralized finance (DeFi) protocols and peer-to-peer (P2P) transactions. Data reveals that 46% of Tron-based USDT was held on centralized exchanges in 2023, a figure that has plummeted to 13% as of recent, reflecting over $70 billion in USDT moving off exchange platforms [1]. Concurrently, daily P2P USDT transfers on Tron have tripled to $15 billion, driven by decentralized exchanges and on-chain payments [2].

The shift underscores a broader diversification of on-chain activities. Tron’s decentralized stablecoin, USDD, now totals $520 million in supply, with just 3% ($13 million) remaining on centralized exchanges. Approximately half of USDD is held within JustLend, Tron’s DeFi loan application, signaling user preference for decentralized financial services [3]. Similarly, SunSwap, the network’s primary decentralized exchange, processed monthly trading volumes exceeding $3 billion in 2025, peaking at $3.8 billion in May 2025 [4]. These figures highlight growing adoption of Tron’s DeFi infrastructure alongside its established stablecoin capabilities.

The expansion is further supported by strategic ecosystem developments. TRON DAO Treasury announced a $120 million liquidity injection to incentivize developers and liquidity providers across decentralized exchanges, lending platforms, and synthetic asset protocols [5]. Regulatory progress in Southeast Asia also fuels growth, with the TRON Foundation securing preliminary approval in Thailand and Malaysia to launch blockchain-based remittance corridors using TRX and USDT. Pilot programs with fintech partners are already underway [6].

While stablecoin transfers remain a cornerstone of Tron’s utility, the network’s role is evolving. Total Value Locked (TVL) on Tron has surpassed $9.1 billion, driven by surging stablecoin activity—accounting for over 60% of global USDT transactions [7]. This positions Tron as a leading platform for low-fee, high-throughput settlements, competing with other Layer 1 protocols. However, the rise in decentralized activity raises questions about regulatory scrutiny as DeFi adoption accelerates.

Market dynamics reflect the network’s growth trajectory. TRX’s market capitalization stands at $29.8 billion, with a 24-hour trading volume of $1.49 billion—a 14.21% increase—indicating renewed short-term interest [8]. The token has been consolidating between $0.31 and $0.325 for seven trading sessions, maintaining support above the 50-day moving average at $0.306. Analysts suggest that a break above $0.325 could target $0.34–$0.35, while a decline below $0.305 risks a drop to $0.29 [9].

The shift toward off-chain and P2P transactions enhances user privacy and reduces counterparty risk, aligning with Tron’s strategic focus on low-cost, high-speed transactions. However, the network’s long-term success will depend on sustaining its cost advantages and innovating in decentralized infrastructure. With emerging markets like Southeast Asia as key growth drivers, Tron’s trajectory underscores its potential to redefine blockchain-based value transfer.

Sources:

[1] [TRON’s 70% USDT Shift to Off-Chain Transfers Drives $70 ...](https://www.ainvest.com/news/tron-70-usdt-shift-chain-transfers-drives-70-billion-growth-p2p-defi-activity-2507/)

[2] [TRON's P2P stablecoin transactions surge 11.6% QoQ, 70 ...](https://www.ainvest.com/news/ethereum-news-today-tron-p2p-stablecoin-transactions-surge-11-6-qoq-70-wallets-2507/)

[3] [TRON's Q2 Surge Cements Its Position as Stablecoin Giant](https://coindoo.com/trons-q2-surge-cements-its-position-as-stablecoin-giant/)

[4] [TRON’s Total Value Locked (TVL) Crosses $9.1 Billion](https://coinmarketcap.com/community/articles/6883f17430753d0544a071ac/)

[5] [TRON DAO Treasury Announces $120 Million Liquidity Injection](https://coinmarketcap.com/community/articles/6883f17430753d0544a071ac/)

[6] [Regulatory Clearance for TRON-Based Payment Channels in Southeast Asia](https://coinmarketcap.com/community/articles/6883f17430753d0544a071ac/)

[7] [State of TRON Q2 2025](https://messari.io/report/state-of-tron-q2-2025)

[8] [TRX/Tradingview Data](https://coinmarketcap.com/community/articles/6883f17430753d0544a071ac/)

[9] [TRX Technical Analysis](https://coinmarketcap.com/community/articles/6883f17430753d0544a071ac/)