Tether Raises $1 Billion on Tron, Pays Zero Fees – Arkham
Tether has spent $1 billion on the Tron network, the USDt (USDT) stablecoin, and paid no fees for large transactions, according to onchain analytics firm Arkham Intelligence.
The analysis platform starts the November 14 trading from the “black hole address” on Tron to the Tether multi-signature wallet with the characters “TBPxh”.
OnChain records show that after $1 billion was sent to a Tether multi-signature wallet, the money was transferred to the stotcoin company's treasury, and this transaction similarly showed zero fees.
Tether released $1 billion with no network fees. Source: Arkham Intelligence
The Tron network's relatively low fees have made the blockchain ecosystem attractive to Statcoin companies and convenient for adopters in developing countries.
Related: Tether Exchanges Over $2 Billion to Ethereum Network
USDT supply on the Tron network
According to Tether's transparency page, the total amount of USDT authorized on the Tron network is $62.7 billion, compared to $62.9 billion on the Ethereum network.
While Ethereum's ecosystem is much larger than Tron's, the alternative layer-1 blockchain has almost the same distribution of USDT. This high volume of stablecoin activity on the Tron network was the main driver behind the network's $577 million revenue in Q3 2024.
Supply of USDT in the blockchain network. Source: Tether
In the year In August 2024, the Tron network became a blockchain ecosystem. At that time, Tron had 37.9% of the total stakecoin market share and the Ethereum network boasted an impressive 55.7% share of statscoins.
In the same month, Tether made an additional $1 billion on the Tron blockchain. Following the stable coin mint, Tether CEO Paolo Arduino explained that the additional USDT was to “replenish” the supply and that the tokens were authorized but not issued.
These authorized but unreleased USDT tokens will remain in the Company's inventory until a new issuance request is made and the tokens are released for trading on the open market.
Digital asset traders use stable coin supply as a proxy to gauge market sentiment and investor interest. If the level of a newly minted stable coin rises, this is a sign that traders are anticipating price movements. Conversely, a decrease in supply indicates lower demand and lower market activity.
Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Looming.
