An Ethereum (ETH) competitor has made significant strides in capturing a substantial share of USDT stablecoin transactions, as reported by the chief executive of the analytics firm CryptoQuant, Ki Young Ju. According to Ju, the value of USDT hosted on Tron (TRX) now surpasses three times the market cap of the layer-1 blockchain.
Ju took to social media to highlight TRX’s success in the stablecoin use case, stating, “TRX has achieved strong product-market fit in stablecoin use cases. TRON blockchain processes 92% of USDT transactions and hosts $60 billion in USDT, yet TRX market cap is only $17 billion. TRX-based USDT is widely used in global trade by offering low-cost, fast stablecoin remittances.”
The Tron network was founded by Justin Sun in September 2017, with the mainnet launching in May 2018. Ju praised Sun for building “the biggest global stablecoin trade remittance system,” emphasizing that he believes Sun has made a significant impact in the stablecoin space.
Shifting focus to Bitcoin (BTC), Ju mentioned that it is premature to categorize the flagship digital asset as being in a bubble. Ju pointed out that Bitcoin’s market capitalization has not experienced a significant surge compared to its realized capitalization, which is determined by calculating the total value of all existing BTC at the price of the last recorded on-chain movement.
Historically, Ju noted that the market cap tends to surpass the realized cap in bull markets, peaking as retail investors enter the market. Conversely, in bear markets, the market cap often dips below the realized cap.
Regarding Bitcoin’s potential price trajectory, Ju mentioned, “Based on the current realized cap, it could rise to $141,000. The realized cap has been steadily increasing every day.” At the time of writing, Bitcoin was trading at $98,223.
In conclusion, the cryptocurrency landscape continues to evolve rapidly, with TRX making significant strides in the stablecoin market and Bitcoin potentially poised for further growth. Stay updated with the latest developments by subscribing to email alerts and following reputable sources on social media platforms.