Tether CEO: Why Can TRON and USDT Maintain Leading Positions in Blockchain Payments?

Tether CEO Paolo Ardoino explained on Twitter here why USDT has been so successful on the Tron blockchain, attributing it to the early robust infrastructure of Tether and the long-standing accumulated brand value in payments. Therefore, most users prefer to transfer USDT on the Tron network rather than other options.

Why is USDT successful on Tron

Paolo mentioned that he has recently received questions like "Why is USDT so popular on blockchain Y?" Editor's Note: Blockchain Y likely refers to Tron.

Ethereum Missed Opportunities Due to High Fees

Paolo mentioned that although many companies in the crypto industry have spent eight years working on meaningful scaling solutions on blockchain Z Editor's Note: Blockchain Z likely refers to Ethereum, and have been promoting DeFi and various applications.

For people in emerging markets and developing countries who cannot afford a five-dollar gas fee, Tron provides a cheap and fast payment transfer layer.

Tron Becomes the Preferred Blockchain for Payments

As a result, many payment service providers choose to integrate with Tron instead of Ethereum due to the resources required, establishing a strong first-mover advantage in the perception of blockchain payments among many enterprises.

Although there are now many competitive Layer2 solutions on top of Ethereum, integration businesses outside the circle are confused when deciding which Layer2 to use. Having multiple choices is good, but timing and market focus are everything.

Other Networks Still Have Specific Target Audiences

Even though Tron is the preferred brand for payments, Tether will not confine itself to a single market.

Tether supports various networks as they are all transport layers for USDT and other tokens, catering to different target audiences. Users will decide which blockchain is best for them based on service support, speed, and cost. Tether thus maintains the same issuance, redemption, burning, and freezing functions on all supported blockchains.

Tether Dominates Payment Use Cases

Through early accurate judgments, USDT leveraged Tron's cost advantage to become the first choice for many payment service integrations, accumulating a solid ecosystem and infrastructure, which are the key strengths of Tether.

On the other hand, due to long-term operation and the mentioned advantages, Tether and Tron have gradually become the preferred brands for blockchain payments. Users typically think of using Tron to transfer USDT conveniently when making cryptocurrency transfers, which is the main reason USDT can grow steadily.