Worried About Ethereum Transaction Fees? Try Out Stablecoin on Tron Blockchain

Cryptocurrencies have taken over the world, like a storm. Almost every industry is embracing the potential of cryptocurrency and relishing its benefits. With the help of blockchain platforms, these cryptocurrencies are facilitating digital transactions. Ethereum blockchain is among the first launched cryptocurrencies after the development of this digital transaction method. 

The Ethereum network comprises the crypto coins and the blockchain technology that makes digital transactions possible. Traders can buy Ethereum and pay a certain ETH transaction fee to trade crypto. People generally confuse Ethereum with cryptocurrency, but it is a distributed blockchain with smart contract scripting.  

Over the years, Ethereum has remained a favoured cryptocurrency in the blockchain market. It has provided traders with all sorts of benefits. According to the recent reports, Ethereum transaction fees are soaring for the second time in three weeks. The average ETH transaction fee has skyrocketed to $10.33 from the latest $5.68. With steep network fees working as the double-edged sword, the rising fees are likely to ward off potential buyers. As the Ethereum fees are continuously rising, the entities of large on-chain transactions are looking for alternative techniques to reduce the pressure. 

How Can Stablecoin on Tron Blockchain Take Over?

There’s no doubt that Ethereum is the world’s second-largest blockchain network after Bitcoin. The transactions on the Ethereum blockchain have increased 2X in 2020 alone. It is the same situation as it was back in 2018, the highest of all-time for Ethereum. The number of transactions has been doubled up on the Ethereum network that eventually mounts up the Ethereum network fees. With ETH transaction fees soaring high, it can be anticipated that many of the projects will move to other blockchain networks. The world’s largest stablecoin Tether (USDT) is a prominent contender that was earlier used only through OMNI blockchain that runs on the Bitcoin network. Later, it shifted to Ethereum owing to the high transaction fee. Now, when Ethereum transaction fees continue to increase from last year, Tether holders have decided to incline towards the Tron cryptocurrency. The Tron blockchain is not as complicated as the Ethereum. Tether’s USDT tokens were launched on the Tron network when the ETH transaction fees were $0.14 in July last year. Now the Ethereum transaction costs are nearly $6. 

How Does The Tron Network Help?

Tron network has issued 50% of the USDT and will be issuing more stablecoins in the future with regards to the rising ETH transaction fees. USDT has also issued Bitcoin Cash, EOS, and Liquid networks. DeFi applications like Maker DAO and Compound are also increasing the load capacity of Ethereum. The transaction model change will involve the current proof-of-work (PoW) based model and proof-of-stake (PoS) blockchain algorithm. It is anticipated that the much-awaited Ethereum 2.0 update will not be able to meet the scalability issues that it is currently facing. 

The issue of stablecoins on the Tron blockchain since April 17 has brought a wave of change in the blockchain world. It is basically an upgrade from the OMNI-protocol-based USDT with a ratio of 1:1 United States dollar. The major highlight is that it allows the users to hold and transfer cryptos via smart contracts with the Tron network, ensuring instant delivery. 

Ethereum Vs. Tron: What Can You Expect From Stablecoins on Tron Blockchain?

Now we are in that phase where we can witness Tron Network and Ethereum becoming competitors. Though the latter is an older crypto leader, both Tron and Ethereum have similar goals that make them the ideal contenders. When Ethereum aims to become the “World Computer,” Tron strives to achieve the same position but with a different perspective. Both have been leveraging the potential of Decentralized apps (Dapps), Decentralized Finance (DeFi), and token creation without permissions (ERC20 and TRC20). So what distinguishes the Tron network in comparison to Ethereum? 

Here are a few parameters based on which we can find the difference and similarities between the two:

  • Stacking The Data: As of February 7, 2020, Coin Metrics data, BTC processed 333,000 on-chain transactions, and ETH witnessed 626,000 transactions in total. TRX soared high with a whopping 816,000 transactions that were the average of ETH’s daily. The Tronscan data revealed that there were 814 million USDT on the Tron’s network. So, when it comes to stacking up data, Tron blockchain is certainly ahead in the race. 
  • Subscribers’ Count: The Github activity data shows that Tron has outshined the ETH’s popularity in the past 12 months. The ETH has 451,000 Reddit Subscribers and Twitter followers. Whereas, Tron has 71,000 Reddit Subscribers and 497,000 Twitter subscribers. ETH has 2,000 watchers and 445 developers to the ETH codebase when it comes to the Github watchers. Tron, in a short period of time, has bagged 309 Github watchers and 118 developers for the TRX Github repository. 
  • Popularity in the Market: Tron is not as old as the Ethereum. Hence, the latter got a head start in the market. Still, both have an influential stance in the market that makes them the ideal contenders. Ethereum being an older player, has a stronger hold on investors and the market. So, it is hard to predict who is currently dominating the market.
  • Investors: Both Tron and Ethereum are dominant in terms of the number of investors. The investors believe only these two have the potential to dominate the crypto market. Hence, it is always beneficial to keep investing in them. No doubt that ETH and TRX are listed in the top 15 largest market capitalization. Investors are still in a daunting situation, whether they should shift to the Tron network completely or still wait for things to get better. 

The Bottom Line

Ethereum is a long-living player in the crypto market that has been leveraging the market demand. Traders and investors have been investing in the Ethereum network due to its versatility, capability, and potential. For the past few weeks, there has been an increase in ETH transaction fees, which has led to a disruption in the market, when they reached an average of $10.33. It called for the need for alternatives that can save traders from the skyrocketing transaction fees. 

That’s when Rodolfo Novak made an announcement that TRX is moving to the liquid network. Moving the Tron network to liquid seemed like a far-fetched dream to users until Tron partnered with Tether to launch TRC20 based USDT stablecoin. Adding the stablecoins to its blockchain was a sure short way to leverage the existing decentralized applications’ ecosystem, improve the overall storage value, and enhance its decentralized DXchange.

Being launched years apart and possessing different market experience, both Tron and Ethereum are now in a cut-throat competition. Both possess the same ideals and goals that make the lookalikes in the crypto market. That’s the reason, Tron network emerges as a great alternative to Ethereum and cut short the soaring high Ethereum fees with the USDT tokens. It would be interesting to witness the changes in the crypto market with regards to the transaction fees and see how stablecoins on the Tron blockchain will turn the tables for Ethereum network status.