USDC was launched on TRON two days ago, and the circulation volume exceeded 100 million US dollars

According to Tron chain data, the issuance of USDC on Tron has exceeded $108 million in less than a month. This may be another sign that cryptocurrency traders are increasingly turning to blockchains that offer faster and cheaper transaction fees than Ethereum.

The announcement comes just a day after Circle said it had added support for USDC on Tron.

One of the stated goals of doing this is to foster the growth of USDC in Asia and around the world, Circle said on its website.

On-chain data shows that the first transfer of USDC on Tron was on June 11.

As a stablecoin, USDC is pegged to the US dollar at a 1:1 ratio, and 1 USDC can be redeemed back to 1 US dollar.

Tron has gained some traction due to the rapid expansion of USDT. According to reports, there is more USDT on Tron than on Ethereum, as traders prefer the network that offers faster confirmations and cheaper fees.

Data from CoinGecko shows that while USDT is the most traded cryptocurrency asset, USDC is also growing rapidly in DeFi adoption. Meanwhile, data from Glassnode shows that nearly half of the USDC supply is currently used in smart contracts.

Figure | Supply ratio of USDC, USDT, and Dai in smart contracts (Source: Glassnode)

Ryan Watkins, a research analyst at Messari, said the biggest difference from how USDC is used on Ethereum is that on Tron it is primarily used for transfers between exchanges. He noted that almost all of the USDC supply on Tron is concentrated in the top 10 addresses.

“The growth of USDT and USDC on Tron could be a sign that many exchanges are just moving their stablecoins to Tron to avoid transaction fees,” Watkins said.