TRON’s 70% USDT Shift to Off-Chain Transfers Drives $70 Billion Growth in P2P and DeFi Activity

TRON’s USDT ecosystem has experienced a significant transformation, with 70% of stablecoin transfers now occurring directly between wallets rather than through centralized exchanges (CEXs) [1]. This shift reflects a broader trend toward decentralized infrastructure, as users increasingly prioritize personal custody and direct value exchange over traditional exchange-based transactions. The surge in off-chain activity highlights TRON’s role as a scalable platform for stablecoin movement, enabling low-cost, high-speed transactions that cater to decentralized finance (DeFi), peer-to-peer (P2P) trading, and cross-border payments.

The volume of off-exchange USDT transactions on TRON has grown substantially, rising from $26 billion to over $70 billion since early 2023 [1]. This growth is driven by P2P transfers, which have tripled in daily volume to approximately $15 billion, alongside increased adoption of DeFi platforms. The decline in CEX-held USDT underscores a fundamental change in user behavior: the share of TRON-based USDT stored on exchanges has fallen from 46% at the start of 2023 to 13% today [1]. Despite this, CEXs still process roughly $10 billion in daily USDT transactions on TRON, accounting for 40% of the network’s total value flow, indicating their continued relevance for large-scale transactions.

TRON’s native stablecoin, USDD, mirrors this off-exchange trend. With only 3% of its $563 million supply held on CEXs, most USDD tokens are deployed in decentralized applications. For instance, nearly half of USDD is locked in JustLend, a TRON-based lending protocol [1]. This deployment pattern aligns with the broader movement of USDT away from centralized platforms, as users prioritize utility-driven use cases such as yield generation and on-chain payments. The active utilization of USDD in DeFi further reinforces TRON’s role as a hub for decentralized liquidity.

The shift to off-chain USDT activity has broader implications for TRON’s ecosystem and the crypto market. By decentralizing stablecoin liquidity, TRON reduces reliance on centralized entities for price stability and trading volume. This benefits institutions and retail users alike, offering faster settlement times, lower fees, and reduced counterparty risks. However, the trend also raises questions about transparency, as off-chain flows may obscure asset movements that regulators increasingly scrutinize.

Compared to other major blockchains like Ethereum and Solana, TRON’s rapid growth in off-exchange stablecoin activity sets it apart. While these networks have maintained more centralized stablecoin flows, TRON’s focus on user experience and cost efficiency has driven adoption among traders and developers. The network’s ability to facilitate large-scale, low-cost transactions positions it as a key infrastructure layer for global stablecoin activity, particularly in regions where traditional financial services are limited.

The data underscores a maturing TRON ecosystem where users leverage decentralized tools for direct value exchange. As USDT and USDD continue to integrate into DeFi and cross-border use cases, the network’s role in reshaping stablecoin dynamics is likely to expand.

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[1] [TRON’s USDT Activity Surges as 70% Transfers Move Off Centralized Exchanges] [https://coinmarketcap.com/community/articles/688267b6747ff0612d594aa5/]