Tron Poised to Challenge Visa as USDT Settlements Surge

Tron (TRX) is positioning itself as a significant challenger to Visa in the digital payments space, with its USDT settlement volumes reaching $1.25 trillion in Q2 2024.

This figure accounts for about one-third of Visa’s annual settlement volumes. Since 2020, USDT transactions on Tron have surged five-fold from approximately $25 billion.

In 2023, USDT volumes on Tron saw a dramatic increase, rising from $4.2 billion to $16 billion, according to Dune Analytics. The total market capitalization of stablecoins on Tron’s network now stands at $60 billion, indicating that Tron has become a primary platform for USDT transactions.

In addition to its dominance in stablecoin transactions, Tron is also making strides in the decentralized finance (DeFi) sector. It is currently the second-largest blockchain by Total Value Locked (TVL), with its TVL growing from about $5 billion in August 2023 to $7.68 billion.

However, Tron’s TVL growth still lags behind Solana (SOL), which has seen its TVL increase more than tenfold from $300 million last year to $4.76 billion.

As for TRX, its price has risen around 20% year-to-date, fluctuating between $0.10 and $0.14. The Relative Strength Index (RSI) shows a positive trend, indicating potential for further gains. The key resistance level for TRX is $0.139, and reaching this level could signal a rally towards new highs.

In terms of market sentiment, 88% of TRX holders, representing 125 million addresses, are currently profitable, suggesting overall optimism. However, the futures market indicates mixed sentiment, with decreasing Open Interest reflecting reduced market activity and mild price volatility.