TRON's Fee Cut Fails to Quell Rising Stablecoin Rivals

TRON, despite recent competitive pressures, remained a dominant platform for USDT (Tether) transfers in August 2025, according to reports and data analyses. The network’s infrastructure continues to support a significant portion of stablecoin transactions, particularly in the retail sector. However, shifting dynamics in the blockchain landscape, including fee adjustments and rising alternatives, are challenging its market leadership.

According to the CEX.io report, stablecoin retail transfers reached record levels in 2025, with transaction volumes through August already exceeding the full-year total of 2024. These transactions, especially those under $250, totaled $5.84 billion in August alone, the highest ever recorded. The report highlighted the growing use of stablecoins for everyday financial activities, including cross-border remittances and microtransactions, particularly in emerging markets [1].

TRON has traditionally been a popular choice for such transactions due to its low fees and widespread support for USDT. The platform allows users to conduct transactions using system resources such as bandwidth and energy, rather than paying fees in native tokens like BTC or ETH. Users can either rent energy, freeze TRX to gain energy, or burn TRX to quickly obtain energy, all of which can result in cost-effective transfers, particularly for TRC-20 tokens like USDT [2].

However, the report also noted that TRON has faced a slight decline in retail stablecoin activity. Monthly transaction counts for TRON fell by 1.3 million, or 6%, with volume growth lagging behind its closest competitors. In contrast, Binance Smart Chain (BSC) captured nearly 40% of retail stablecoin activity, with a 75% increase in transaction counts and a 67% rise in transfer volume. This shift was partly attributed to Binance’s decision to delist USDT for European users in March and the increased activity on PancakeSwap [1].

Despite this, TRON's dominance in USDT transfers persisted, with 90% of its revenue still derived from these transactions [3]. In response to competitive pressures, TRON recently cut transaction fees by 60%, aiming to maintain its position as a low-cost option for users. However, the fee reduction came as Plasma, a new zero-fee USDT transfer solution, began attracting significant deposits—around $2 billion in pre-launch campaigns—suggesting a potential threat to TRON’s market share [3].

The Ethereum complex, including both the base chain and layer-2 solutions, also gained traction, with combined activity accounting for over 20% of stablecoin transfer volume and 31% of transaction counts. Ethereum’s mainnet saw a notable rise in sub-$250 transfers, with volume increasing by 81% and transaction counts rising by 184% [1]. This growth was partly driven by a significant reduction in transaction costs, which dropped over 70% in the past year, making the mainnet more competitive in the retail segment.

Looking ahead, the competitive landscape for stablecoin transfers remains dynamic. While TRON’s fee adjustments and robust infrastructure continue to attract users, the emergence of new solutions like Plasma and the growth of BSC and Ethereum suggest a more diversified market. Whether TRON can sustain its position will depend on how effectively it can adapt to these changes and continue to offer cost-effective and reliable services for stablecoin transactions.

Source:

[1] Stablecoin Retail Transfers Hit Record Level as BSC, ... (https://www.coindesk.com/markets/2025/09/07/stablecoin-retail-transfers-break-records-in-2025-hit-usd5-8b-in-august)

[2] Want Low-Cost Transfer of Tron USDT? Don't Miss This ... (https://support.token.im/hc/en-us/articles/27669064968729-Want-Low-Cost-Transfer-of-Tron-USDT-Don-t-Miss-This-Energy-Guide)

[3] Tron's fee gamble (https://blockworks.co/news/tron-fee-gamble)