Victor Ugochukwu · Oct 22, 2020 . 5min read
USDT on Tron had surpassed USDT on Ethereum in daily transaction counts since August 30, 2020
Through a recent tweet, Justin Sun bought to notice on how TRC-20 USDT transaction counts surpassed that of ERC-20 USDT since August.
By Victor Ugochukwu · Oct 8, 2020 . 7min read
Justin Sun founder of Tron blockchain network posted a link to a chart that shows USDT on Tron had surpassed its Ethereum version since August 30. The relentless marketer who has been called many names from “scammer” to “shill” or even “Pump and Dump” master nevertheless dropped the link to his claims to prove any of his critic wrong on this one.
Checking Tokenview shows that TRC-20 USDT, which is the representation of tether stablecoin on Tron blockchain shows its transaction counts actually surpassed ERC-20 USDT since August 30, 2020.
So before that, TRC-20 USDT transaction counts danced around zero on 6th August. And by 13th August, USDT transaction counts on Tron hovered slightly above that on Ethereum but didn’t maintain its lead.
Transfers using stablecoins has grown and even surpassed its BTC counterparts since June this year. We earlier reported on this and how this is changing the cryptocurrency landscape. As of writing this report, the overall market cap for stablecoin has surpassed $20 billion with tether having 415.8 billion of that. And USDT, which is the largest stablecoin, still controls at least 33% of the whole ERC-20 tokens. The overall market cap of ERC-20 tokens is $46.5 billion.
It’s important to note that transaction counts and transaction volume are two different things. While the first takes into account the number of transactions on a blockchain network, the other considers what monetary volume the network captures. Hence, 1,000 transaction counts on a blockchain may not necessarily match the volume of just ten transactions on another network.
While USDT transaction counts on Tron have surpassed that of Ethereum, much of the volume of the stablecoin is still on Ethereum.
Tron brags of higher throughput and cheaper network fees than Ethereum.
Tron which once faced the allegations of plagiarizing Ethereum whitepaper upon launch in 2017 boasts of faster transactions speed. It claims to be able to facilitate up to 2,000 transactions per second (tps). Ethereum, on the other hand, can only accommodate about 10 – 15 tps at peak network times. So, while Tron runs on DPoS consensus algorithm, Ethereum is presently running on Proof-of-Work. Moreso, Ethereum is racing against time to transition to Proof-of-Stake with Eth 2.0 knocking.
As network transaction count is good to measure the usability of a blockchain network, there are more important metrics. Transactions volume matters more because it states what monetary value a network captures. Moreover, there’s been news of some blockchains like EOS pushing artificial transaction counts using bots. Perhaps until more reputable blockchain analytic firms peruse USDT transaction counts on Tron higher than Ethereum, volume seems a more practical metric.
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Komal Joshi · Oct 22, 2020 . 5min read