Tron has continued solidifying its position as a leading blockchain for stablecoin transactions with it recording a massive $1.52 billion inflow over the past week. Meanwhile, Ethereum – the long-standing giant in the decentralized finance (DeFi) space – has experienced a significant outflow of $1.02 billion in stablecoins during the same period.
As per Lookonchain data, the stablecoin inflow on Tron has surged record breaking amount past this week as it sees $1.52 billion of stablecoins (USDT and USDC) injected into its DeFi ecosystem.
The latest figures mark a continuation of Tron’s impressive growth in stablecoin activity. Tron has consistently attracted substantial inflows over the past month. Just a week ago on April 7, Tron saw a $396 million increase while Berachain recorded a $269.56 million outflow.
This trend began gaining momentum earlier in this year with Tron adding $824.51 million in stablecoins by late February. This shift is largely driven by its low transaction fees, fast transfer times, and its strong presence in emerging markets.
Tron’s appeal for stablecoin users, particularly for USDT, stems from its cost-effective infrastructure and a robust user base. The average stablecoin transaction on Tron is significantly smaller than on Ethereum which makes it a preferred choice for retail users.
As per DeFillama data, the total stablecoin market cap currently sits at $232.29 billion with majority 52.67% deployed on Ethereum while Tron having 29.36% dominance with $68.18 billion.
While being a powerhouse for DeFi applications and institutional crypto transactions, Ethereum has seen consistent outflows of stablecoins in the past few months. This recent $1.02 billion decrease follows a pattern observed in earlier weeks as on March 24, it lost $1.01 billion, and on March 17, it saw a $668 million increase, only to be overshadowed by larger outflows later.
Back in February, Ethereum recorded a $208 million outflow, as liquidity appeared to shift toward more cost-effective solutions like Tron and Ethereum-compatible Layer-2 networks such as Base, Polygon, and Optimism.
Some analysts suggest that Ethereum’s higher transaction fees and slower processing times for smaller transactions have driven retail users toward alternatives like Tron. However, Ethereum remains a viable option for higher-value holdings and transactions, with Layer-2 solutions helping to mitigate some of its scalability challenges.
