Tron USDT Overtakes Visa in Daily Transaction Volume

by

As a seasoned crypto investor with a keen interest in blockchain technology and its potential impact on traditional financial systems, I find the recent development of Tether (USDT) surpassing Visa’s daily transaction volume truly noteworthy. The data released by Lookonchain and Nansen highlights the rapid growth of stablecoins and their increasing influence on the global financial ecosystem.

According to recent on-chain data from Lookonchain, the trading volume of Tether (USDT) on the Tron network hit an impressive $53.031 billion in the past 24 hours, marking a 10% surge. This substantial figure surpasses Visa’s average daily transaction processing volume. Notably, Visa is a global leader in payment processing, facilitating transactions worth billions every day across over 200 countries and regions.

USDT Tops Visa’s Daily Transactions

The worth of Tron USDT has surged significantly, boasting over 45 million holders and recording over 1.8 billion transfer transactions. This surge can partially be explained by the heightened need for stablecoins during a crypto market slump.

Tron, a blockchain platform designed for creating decentralized apps, has witnessed a significant surge in value, with its total locked value (TVL) exceeding $8.1 billion. This positions Tron as the second-largest blockchain network, trailing only Ethereum‘s $13.6 billion lead. Furthermore, the Tron ecosystem has yielded approximately $730 million in revenue during this year, ranking it second to Ethereum’s impressive $1.6 billion earnings.

Visa has built a strong reputation as a leading payment processor over the years. Yet, the surging popularity of USDT and other stablecoins presents a potential threat to this dominance. In order to keep pace with these emerging alternatives, Visa might consider developing its own blockchain-based system and stablecoin to remain competitive in the market.

Stablecoins Outpacing Traditional Payment Networks

According to a report by Nansen, a leading on-chain analytics firm, published in April, the three largest stablecoins – Tether, USDC, and DAI – saw greater trading volumes than Visa during the March analysis. The data revealed that the monthly trading volume for these crypto assets exceeded Visa’s 2023 figures around that time.

The on-chain firm further revealed that Tether processed $654 billion around that same period, while DAI had $394 billion and USDC saw $321 billion. Thus, the total of these three was $1.369 trillion, while Visa, on the other hand, was $1.23 trillion in 2023. Also, in the data released, Tether had almost the same monthly volume as Mastercard, the second-largest card provider. According to Nansen, the average monthly volume of Mastercard was 750 billion in 2023, which was, in total, $9 trillion by the end of 2023. Not only that, Tether also surpassed PayPal, which was gaining $125 billion each month in the same year.

The milestone reached by USDT in processing more transactions than Visa underscores the expanding use and impact of cryptocurrencies and stablecoins within the international financial infrastructure. Given recent regulatory crackdowns on the crypto market, it’s reasonable to anticipate a surge in transaction volume for stablecoins as traders seek safe havens for their digital assets.

Read More

2024-06-21 16:07