Tron: USDT dominance reaches peak as DeFi resurgence

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The total value locked (TVL) of stablecoins on the Tron blockchain declined slightly at the beginning of the second half of 2023, but eventually surged to an all-time high of approximately $48 billion.

This is confirmed by a recent report from Reflexivity, which revealed that approximately 94% of this total value belongs to USDT.

Tron becomes the first choice for USDT

reflexive research Announce Tron maintains USDT’s position as the leading blockchain, with TVL exceeding the Ethereum mainnet by about 8%.

Tether is one of the earliest fiat-backed stablecoins in the crypto market. It was originally launched on Bitcoin’s Omni chain, later expanded to Ethereum, and is now mainly used on Tron and Ethereum.

One notable difference is the composition of stablecoins on Ethereum, which represents a more balanced mix of on-chain USDT and USDC, with USDT completely dominating the Tron ecosystem.

This dominance is further reflected in Tron contracts, where USDT token contracts consume the majority of on-chain “energy”, accounting for approximately 95.6% of total contracts. This shows that Tron is mainly used for USDT trading, with limited diversification.

While USDT trading volume grew modestly throughout 2023, a particularly interesting trend is that the number of USDT holders increased by 130% during the same period, according to data compiled by TronScan.

Tron’s DeFi renaissance

The Tron ecosystem has witnessed many consecutive exploits. Poloniex, the cryptocurrency exchange acquired by Justin Sun, was hacked in November last year. Attackers allegedly stole nearly $125 million after breaking into hot wallets.

A few weeks later, cryptocurrency exchange Cooperative and blockchain protocol Heco Chain were breached, stealing a total of $97 million worth of various digital assets.

Despite this, the DeFi side of Tron remains stable.

Citing data from DeFiLlama, Reflexivity observed that in the second half of 2023, the total locked value of DeFi on the Tron blockchain increased by approximately 43%, totaling approximately $8.1 billion.

This growth solidifies Tron’s position as the second-highest TVL protocol, behind Ethereum (approximately $29 billion) and ahead of Binance Smart Chain (BSC) ($3.1 billion). This growth is primarily led by leading DeFi protocol JustLend, which accounts for approximately 80% of the Tron network’s total TVL.