USD Coin (USDC) is in circulation on Tron (TRX) for barely a week and over 100 million coins are already there. Will there be a reorganization in the stablecoin market soon?
Tron is preparing to overtake Ethereum (ETH). A change of guard is looming, especially when it comes to stablecoins. The amount of USD Coin (USDC) circulating on the Tron Blockchain has already exceeded the 110 million mark. And that despite the fact that USDC was only launched there in early July.
The rapid growth of the Tron Blockchain is likely to be a thorn in the side of Ethereum in particular. After all, the ETH blockchain has always been seen as a go-to solution for stablecoins and smart contract projects of all kinds. With the USDC launch on Tron, of course, there is serious competition here. A look at Tether (USDT) also shows that this is not entirely out of thin air. For the stablecoin competition, TRX has been Blockchain No. 1 since April: USDT worth over 32 billion US dollars is on Tron, while Ether manages “only” 30 billion US dollars in USDT. So the flippening has already taken place here.
The migration to Tron is primarily due to the lower transaction fees and the faster speed. After all, Ethereum (ETH) still incurs fees averaging $ 2.61.
USDC: Importance is growing
Those responsible at Tether shouldn’t lose sight of the second most important stablecoin either. It is true that USDT is undisputed so far at 62 billion US dollars. At 25 billion US dollars, the USDC is no longer a small fish – and hot on the heels of the industry leader. Should USDC be able to win over other blockchain networks, complete flippening can no longer be ruled out. Recently, Tezos (XTZ) also had signalsto enable trading in USDC.
The importance of stablecoins is growing continuously. For traders, they are indispensable vehicles in order to be able to open and close positions quickly without having to make the detour into the fiat world beforehand. That saves time and money.
It is also these two variables that will ultimately be decisive in determining which blockchain wins the race. Because unlike Bitcoin, the degree of decentralization of the networks seems to be less important than their cost efficiency.
USDC is a fully covered US dollar stablecoin issued by the crypto payment service provider Circle. But Coinbase is also affiliated with USDC. Together with Circle, the Bitcoin exchange forms the Center Consortium, which, among other things, promotes the marketing of USDC and guarantees its coverage with one physical US dollar each.