The Tron network, known for years as a cost-effective way to transfer USDT, is undergoing a transformation. Users are no longer limited to simply moving this Tether-issued stablecoin, but are actively exploring the ecosystem created by Justin Sun, embracing DeFi protocols, lending platforms, and new forms of on-chain interaction.
A notable change can be seen in the handling of USDT within Tron. In 2023, around 46% of this stablecoin's supply was held on centralized exchanges (CEXs), but today that figure has dropped to 13% (black line), and the amount of USDT held outside of CEXs (red area) has grown substantially, according to on-chain data provider CryptoQuant.
Total supply of USDT on the Tron network, both on centralized exchanges (CEXs) and off. Source: CryptoQuant.
This indicates that over $70 billion worth of USDT on the Tron network now resides outside of these platforms , up from $26 billion two years ago. P2P transfers, trading on decentralized exchanges (DEXs), and on-chain payments have driven this growth, with P2P transfers growing from $5 billion daily in 2023 to $15 billion today.
While usage outside of DEXs is growing, centralized exchanges still handle 40% of USDT's value flow on Tron, equivalent to $10 billion per day, CryptoQuant says.
With a total USDT supply on these platforms of around $11 billion, CEXs remain key for high-volume transactions, despite the migration of funds to other uses.
USDD and the rise of DeFi
Tron's decentralized stablecoin, USDD, reflects a similar trend. With a total supply of $520 million, after peaking at $563 million on July 16, only 3% (about $13 million) is held on CEXs, the research notes.
This chart shows the distribution of the total USDD supply on the TRON network, differentiating between the amount on and off CEXs. The red area represents USDD held outside of CEXs, while the purple area (barely visible at the bottom) indicates USDD held on CEXs. The black line shows the percentage of the total supply held on CEXs.
Distribution of the total USDT supply on the Tron network. Source: CryptoQuant.
Half of the USDD is held on JustLend, a decentralized lending app on Tron, highlighting the growing interest in DeFi protocols.
This move suggests that users are looking to leverage Tron for decentralized finance, cross-border remittances, and P2P payments, rather than holding funds on centralized platforms.
Tron's DeFi ecosystem is also gaining traction, SunSwap, the network's main DEX, processed more than $3 billion in monthly trades during 2025, with a record $3.8 billion in May. This volume highlights how users are diversifying their activities on Tron, exploring opportunities beyond USDT transfers.
Impact on TRX price
The price of Tron (TRX), Tron's native cryptocurrency, reflects these changes. It was trading at around $0.07 in 2023, but has since risen 348%, reaching $0.31 today. The growth of USDT and DeFi activity are among the factors driving this surge. Furthermore, the price of TRX has seen sustained growth over the past three years, reflecting user interest in Tron and its ability to offer efficient financial solutions.
