Tether (USDT), a popular stablecoin pegged to the US dollar, briefly surpassed the average daily trading volume of payments giant Visa on the Tron blockchain network.
Data from TronScan, a Tron block explorer, reveals that USDT volumes reached a staggering $53 billion over 24 hours last week. According to blockchain analysis platform Lookonchain, this figure exceeds Visa’s average daily volume for Q1 2024 by a significant $9 billion.
This news highlights the growing adoption of cryptocurrencies, particularly stablecoins like USDT, in Africa. Christopher Maurice, founder of the African crypto fintech platform Yellow Card, explains the popularity of USDT on Tron in the region. In a March interview, Maurice pointed to the low transaction fees and ability to hedge against inflation as key factors driving user preference for this combination. He further revealed that USDT boasts considerably higher liquidity on Tron compared to larger networks like Ethereum.
However, despite witnessing multi-billion dollar USDT volumes, Tron’s relationship with other stablecoin providers has been less smooth. Earlier this year, both Circle, the issuer of another major stablecoin USDC, and cryptocurrency exchange Binance ceased support for USDC transactions on the Tron network, citing concerns about trust, transparency, and safety.
While the recent surge in USDT volume showcases the potential of cryptocurrencies, the network still faces challenges in building trust with established players in the financial landscape.
