As a leading Crypto Payment Gateway provider, Orbital keeps a close eye on the evolving landscape of stablecoin payments. Our clients—online merchants processing crypto payments—often ask us which blockchains they should support to meet consumer preferences. By analyzing on-chain data, we help merchants stay ahead of trends, identifying the blockchains and tokens most favored for stablecoin transactions.

As of July 2024, 98% of all Orbital stablecoin transactions occurred on the TRON blockchain, but recent increases in gas fees have raised questions about its dominance. Is TRON still the top choice, or should merchants start  supporting  alternative blockchains?

TRON’s Rise as a Stablecoin Hub

TRON has long been a favourite for stablecoin transactions, particularly with Tether’s USDt. Currently, TRON holds approximately $62.7 billion worth of Tether, nearly matching Ethereum, which hosts $62.9 billion. Stablecoins are a significant revenue driver for TRON, generating $533 million in Q3 2024, and by August 2024, TRON claimed 37.9% of the stablecoin market share.

In August alone, Tether minted an additional $1 billion USDt on TRON, with 14 minting events taking place in 2024. This increased TRON’s stablecoin volume from $48.8 billion at the start of the year to today’s figures, cementing its position as a dominant player in the ecosystem.

TRON Still Leads Consumer Stablecoin Payments

Orbital analyzed on-chain data from June to October 2024, focusing on consumer-size transfers—payments most likely used for goods and services rather than DeFi or smart contract activities. The findings show TRON still leads, but Binance Smart Chain (BSC) is rapidly catching up:

TRON remains the clear leader, but why is Binance Smart Chain gaining traction?

Why Is Binance Smart Chain Growing

TRON’s competitive edge as a low-cost blockchain is eroding. Gas fees on TRON have risen sharply, with transaction costs now averaging $5.44 USD, according to GasFeesNow, a significant increase from earlier in 2024. 

High gas fees incentivize users to seek cheaper alternatives. Enter Binance Smart Chain. With an average gas fee of just $0.01 and near-instant transaction confirmations, BSC is quickly becoming a preferred choice. 

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BSC’s position is further strengthened by its ecosystem:

• Emerging Market Focus: Most consumers using stablecoins for payments are in emerging markets like Brazil, Nigeria, Turkey, Vietnam, India, to name just a few. Many users in these markets on-ramp into crypto via Binance’s P2P marketplace, already trusting its ecosystem.
• Free Withdrawals: Binance frequently offers free USDT withdrawals when users choose BSC, providing an added incentive to switch.

Following this trend, Orbital already enables merchants to accept USDC and USDT on BSC through its Crypto Payment Gateway.

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Recommendations for Merchants: Supporting Stablecoin Payments

From Orbital’s perspective, TRON remains the top choice for stablecoin payments. However, the growing popularity of Binance Smart Chain means merchants should support both TRON and BSC. Offering this flexibility ensures a seamless payment experience for consumers, allowing them to choose their preferred blockchain.

At Orbital, we continuously monitor trends in stablecoin transactions and payments. Our insights are part of our commitment to helping businesses optimize their crypto payment strategies. Stay tuned as we prepare a detailed research report on Stablecoin Consumer Payments. Follow us on LinkedIn and X to be the first to know.

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