In less than a month, on the Tron blockchain, the circulating supply of USD coin (USDC) has surpassed 108 million, according to blockchain data. This could be yet another indication that cryptocurrency traders are increasingly flocking to blockchains that provide lower transaction costs and faster speeds than Ethereum.
Just a day before the milestone, Circle, the crypto-native financial services business behind the dollar-pegged stablecoin, USDC has been added to Tron's list of supported currencies. “Enabling [USDC] growth in Asia and around the world” is one of the strategic goals, according to Circle’s website.
USDC is a stablecoin that is pegged to the US dollar one-to-one, with each token redeemable for the same dollar amount.
The Tron blockchain, created by Justin Sun, has already gained traction as a result of the rapid expansion of tether (USDT), the network's largest stablecoin by asset cap.Tron has more tether than Ethereum, the network of ether (ETH), according to CoinDesk, since traders choose blockchains that allow faster and cheaper transactions.
While tether is the most widely traded crypto currency, CoinGecko data shows that USDC usage in decentralised finance (DeFi) is fast expanding. Meanwhile, according to Glassnode, smart contracts are currently using about half of the USDC supply.
The primary difference between how USDC is used on Ethereum and how it is used on Tron is the way it is used on Ethereum is that it's mainly used for inter-exchange transfers, said Messari's research analyst, Ryan Watkins. Almost all of the USDC supply on Tron is concentrated in the top ten addresses, according to him.
Tether's and now USDC's increase on Tron could indicate that "many exchanges are simply shifting stablecoins over to Tron instead of Ethereum to save fees," according to Watkins.
In a WeChat chat, Tron's Sun stated tha the USDC supply concentrated on the top addresses acts as a "reserve" for exchanges planning to trade USDC on Ethereum for Tron users in the near future.
“Those ERC-20 USDC that are delivered to the Tron blockchain would be burned,” Sun stated, noting that crypto market Poloniex has already begun to offer USDC on Tron.
As of the time of publication, Circle did not answer to queries for comment on USDC's progress on Tron right away When a response is received, the article will be updated.
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