TRON (TRX) Becomes a Major USDT Hub as DeFi Activities Pick Up on Several Networks

DeFi activities have picked up on several networks after increased stablecoin supply. TRON has become a major USDT hub with record volumes in the last four years.

DeFi activities have picked up on several networks following an increase in stablecoin supply. TRON has become a major USDT hub with record volumes in the last four years. Stablecoins remain pivotal in gauging crypto market growth as the tokens are often referred to as gateway assets to institutional investors.

According to data from CryptoQuant, TRON’s USDT supply has surged from $6.7 billion in 2021 to $62 billion now. This staggering increase marks a 924% rise in stablecoin adoption.

Industry analysts are highlighting the rising DeFi activities on TRON and other networks. This comes as DeFi activities took a hit this month amid the wider market downturn, which left traders pessimistic.

Increasing sell pressure throughout the year dampened sentiments as assets failed to reach the anticipated levels recorded in Q4 2024.

Overall, most networks saw a decline in total value locked (TVL) alongside a plunge in trading volumes. However, investors are still amassing stablecoins due to their role as a bridge to DeFi tokens and their stability compared to other assets.

“Comparing the growth of USDT supply on TRON’s TRC-20 protocol to Ethereum’s ERC-20 protocol highlights TRON’s recent dominance. In summary, TRON’s substantial increase in USDT supply and its growing role in the DeFi ecosystem reflect its rapid development and the increasing adoption of its blockchain platform. These trends suggest a promising future for TRON as a central player in the evolving landscape of decentralized finance,” CryptoQuant added.

This also applies to the TON network, which recorded a decline in TVL amid present trading conditions. At the time of writing, the network’s TVL hit $171 million, while daily volumes are at $12.1 million.

On the other hand, staking activities on TON tapped new highs, suggesting that more holders are shifting to earning yield on assets.

As investors turn their attention to DeFi tokens and yield earnings, altcoin headwinds have posed limitations.

After Bitcoin’s price dropped under the $100K anticipation, altcoins followed the same path, plummeting below support.

These can impact the anticipated growth in DeFi, considering the low sentiments in Ethereum, Solana, and other assets.

Ethereum’s price stands at $2,708, far below the $5K anticipation after traders speculated on the asset soaring to new heights in the next altcoin season.

A similar decline has also been recorded in XRP and Solana. XRP broke the $3 mark before slipping to $2.64, wiping out substantial gains.