The partnership between TRON (TRX) and Tether (USDT) continues to flourish, and according to a recent announcement by TRON CEO, Justin Sun, it is developing quite rapidly. On his Twitter account, Sun posted that TRON now occupies 3.5% of total USDT supply, which translates to 100 million of the total 2.8 billion USDT. Sun also predicts that this amount is close to doubling, which should happen very soon.
— Justin Sun (@justinsuntron) April 25, 2019
TRON and Tether
Tether (USDT) is the biggest stablecoin to date, with a market cap that exceeds $2.84 billion. The project had recently entered a partnership with TRON, which resulted in introducing USDT to the TRON network. This TRC20-based Tether has since come to be known as USDT-TRON.
The advantages of the new form of Tether are numerous, starting with the fact that it is interoperable with all dApps and protocols of TRON ecosystem. This makes USDT transactions much faster, as well as free, which is expected to bring numerous new use cases to the stablecoin.
Obtaining USDT-TRON is also quite simple, and coin holders can do it on several large exchanges, such as OKEx, Huobi Global, Cobo, and Gate.io.
However, it should be noted that not all of the USDT coins will migrate to TRON network, and a significant portion will remain in the form of USDT-Omni.
Some entities in the crypto industry have already announced that they plan to support both versions of Tether, such as Poloniex exchange. The exchange has announced that, from their point of view, both versions of USDT are sharing a common reserve. As such, they are pretty much the same currency, only on two different blockchains. In any case, they guaranteed that the migration of Tether coins would not affect the USDT market on Poloniex.
How did the migration affect TRON?
TRON has seen some big changes in its price in the past month, and even more since the year had started. For the most part, the coin has been losing value, although very slowly, over the span of several months. While its price remained volatile — going up and down all the time — in the long term, its average price was decreasing.
This changed in March when the coin hit what is believed to be its bottom, and the decline of its price was stopped by a support level at $0.022500. After spending pretty much the entire March between this support and a resistance at $0.023500, TRON suddenly surged with the rest of the market on April 1st.
In less than two weeks, the coin breached a massive resistance at $0.0300, but it soon saw a correction that forced it down, to $0.027. As time went by, the price did not see any new bull runs. Quite the opposite, in fact, it continued to drop until it reached the current $0.023238 per coin.
In other words, while introducing Tether to the TRON network is a great thing for USDT — as well as Tether users — it does not appear to have a particularly positive influence on TRON itself. However, USDT-TRON is, in fact, faster and cheaper to use, and it will likely make the TRON blockchain more attractive to institutional investors and large companies that might be looking for a partnership.