Tron Network Dominates USDT Supply, Fuels Network Activity

The Tron (TRX) network, established by Justin Sun in 2017, is increasingly becoming the preferred choice for both retail investors and large-scale traders (whales) in the cryptocurrency market. This is largely due to its growing supply of USDT, a stablecoin pegged to the US dollar and issued by Tether.

Tron’s Growing USDT Base Drives Network Activity

• Tron boasts the largest available USDT supply among all major chains, even surpassing the market capitalization of USDC.
• An increase in large transaction volumes on Tron suggests heightened activity from whales.
• On-chain data reveals that USDT transactions are the most utilized contracts on Tron in 2025.

Data from CryptoQuant indicates that over $694 billion in USDT was transferred through 89.33 million contract interactions on the Tron network in May. Of these transfers, $691 million in USDT transfer volume exceeded $100 on the Tron network in May.

Notably, whales dominate the USDT transfer flow, with over $455 billion in transfers, including transactions with volumes exceeding $1 million, accounting for 65% of the monthly volume.

The surge in transfers is fueled by Tron’s low transaction fees and the increasing supply of USDT.

Of Tron’s $79.044 billion stablecoin market capitalization, USDT dominates with over 99%, while Decentralized USD (USDD) ranks second with $421 million.

The market capitalization of USDT on Tron, standing at $77.7 billion, has surpassed Ethereum’s $73.2 billion due to recent minting activity on the Tron network. Remarkably, USDT’s market dominance is solidified by exceeding the market capitalization of USDC, issued by Circle, which is at $60.9 billion.

Furthermore, World Liberty Financial, led by former U.S. President Donald Trump, recently launched its USD1 stablecoin on the Tron network.

In 2025, the Tron network witnessed over 17 mintings of more than $1 billion in USDT. As the frequency of minting increases, the rising supply could further stimulate network activity on Tron.

Since its inception, the network has processed over 10.5 billion transactions, averaging more than 6 million daily in 2025.

TRX Faces Resistance, Potential Retracement Looms

TRX is currently experiencing losses, declining by over 1.50% at the time of writing on Thursday, following a sharp 4.51% correction. This bearish reversal stems from headwinds at $0.30, a key resistance level highlighted by a double top pattern in December 2024.

The Relative Strength Index (RSI) has fallen to 49 on the daily chart, indicating a significant decrease in bullish momentum. Crossing below the midline, the indicator suggests considerable room for correction before reaching the oversold threshold.

Additionally, the Moving Average Convergence Divergence (MACD) indicator has crossed below its signal line after a recent false bullish crossover. These recent crossovers indicate uncertainty and increased volatility as TRX fluctuates between key levels.

The downward trend signals a potential continuation towards the $0.26 support level of a previously formed consolidation range.

However, investors looking to buy Tron might view a close above $0.28 as a potential signal that buyers are returning to retest the $0.30 resistance.

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