Despite all the marketing and hullabaloo about technical superiority, altcoin chains’ value propositions have not translated to the eroding of Bitcoin’s dominance, and while Bitcoin continues to march on and distance itself from other blockchains and their related tokens, these so-called layer one blockchains or utility tokens are finding it hard to sucker in new forms of liquidity.
Apart from hope and prayer that spot ETFs offer these unregistered securities access to passive investors, the only other saving grace is US-dollar-backed stablecoins like Tether (USDT) and USDC.
Stablecoins have been the life support keeping altcoin chains going, with a total market cap of $235 billion, according to CoinGecko. Stablecoins give altcoin chains a reason to exist outside speculation and gambling, allowing for international clearance with USD-settled payments and providing liquidity and trading pairs for the endless tokens issued on these chains.
Stablecoins are available on a myriad of chains, but the majority of issuance happens on two chains. TRON is one of the biggest networks for USDT transactions going head-to-head with Ethereum.
Tron holds around 43% of issued USDT, while ETH holds 52%.
Ripping out stablecoin transactions from either blockchain would cause them to wither and die within months. That’s not a good place to be, being beholden to a third party to keep your ecosystem going.
TRONs growth as a stablecoin network was off the backs of being the second best option to Ethereum; their USP was cheap fees being a proof of stake network, but over the years, as volume transitioned over to the TRON blockchain, fees have skyrocketed.
TRON realizes that this is killing their business model, and without turning over USDT, they can’t net fees or demand users purchase their token to pay for transactions or stake to lower transaction costs.
So Justin Sun is trying to tape a new banana two a canvas with the introduction of TRON’s “gas-free wallet”, specifically targeting USDT users, which has generated significant buzz within the crypto community who can’t do any due diligence if it doesn’t come in the form of a tweet or YouTube video.
Taking a second to look at the reality behind the marketing of “gas-free transfers” you’ll quickly realise it’s a bunch of nonsense.
Why TRON Has Become the Most Popular Network for USDT
TRON’s rise to prominence in the USDT ecosystem can largely be attributed to its significantly lower transaction fees compared to Ethereum.
While Ethereum gas fees have notoriously spiked during periods of network congestion—sometimes reaching $50-100 per transaction—TRON’s fees have remained consistently minimal, typically less than a cent per transaction.
This dramatic cost difference has made TRON-USDT (often called TRC20-USDT) the economical choice for users making frequent transactions or transferring smaller amounts.
Faster Transaction Speed
TRON’s blockchain architecture enables considerably faster transaction confirmations than Ethereum during its proof of work days.
While Ethereum transactions can take minutes or occasionally hours during peak congestion, TRON transactions typically confirm within seconds.
This speed advantage has made TRON particularly attractive for traders who need to move funds quickly between exchanges or into trading positions.
Exchange Adoption
Major cryptocurrency exchanges have widely embraced TRON for USDT withdrawals and deposits, often making it the default network option due to its efficiency and lower fees.
Many exchanges even offer reduced or waived withdrawal fees specifically for TRC20-USDT withdrawals, further incentivizing users to select TRON over alternatives.
Accessibility for New Users
The lower entry barriers for TRON have made it more accessible to cryptocurrency newcomers.
New users entering the market are naturally drawn to the network that offers the most cost-effective way to transact with the market’s most popular stablecoin.
This has created a network effect where TRON’s USDT user base continues to expand, further cementing its position as the preferred network.
Developing Market Focus
TRON has gained particular traction in developing markets where users are especially sensitive to transaction costs.
In regions like Southeast Asia, Latin America, and Africa, where even small fees can be significant, TRON’s cost advantages have driven widespread adoption of TRC20-USDT as the preferred stablecoin implementation.
What Is the Gas-Free Wallet?
TRON’s recently launched “gas-free wallet” represents a strategic move to consolidate its position in the USDT ecosystem further. This seperate wallet solution is designed specifically for USDT users and promises to eliminate the need for users to hold TRX (TRON’s native token) to pay for transaction fees.
At a surface level, this solves one of the most common pain points for stablecoin users: the need to maintain a balance of the network’s native token solely for paying transaction fees.
But really, it’s an option to funnel users to purchase the native token instead.
Tron's Gas Free feature supporting USDT gas payments without the need for TRX will launch within the next week. Teams and wallets wishing to support this feature, please contact support@justlend.org. Keep Building!
— H.E. Justin Sun 🍌 (@justinsuntron) February 25, 2025
If you opt for the gas-free wallet, you are required to pay a one-time “Activation Fee” during your first USDT transfer.
This fee amounts to 10 USDT.
Then, for every transfer/purchase you make from this gas-free wallet, you must still pay 10 USDT.
So what’s the bloody point of this? This just sounds like PayPal with an even more rigid pricing model.
How will charging users more for a service solve the problem of high fees?
My guess is that migrating users over to a gas-free wallet is only there to sucker people into the ecosystem, only to find that it’s total crap, forcing them to purchase TRON or stake TRON to use the standard wallet.
Good luck with that dumbass sales pitch!
Additional Trade-offs For Going Gas-Free
Users should be aware of the trade-offs involved with “gas-free” solutions:
- Potential custodial risks: Some control may be delegated to the wallet provider.
- Privacy considerations: More user data may be collected compared to traditional non-custodial wallets.
- Limitations on transaction types: Complex DeFi interactions may not be supported under the “free” model.
- Dependency on the provider: If the wallet service changes its terms or shuts down, users could face disruption.
No Moat Will Leave You With A Cut Throat
This wallet launch is a cry for help as TRON tries to keep users in its ecosystem and lower the technical barriers that might prevent mainstream users from adopting cryptocurrency.
By eliminating the complexity of managing multiple tokens just to use USDT, TRON aims to make crypto more accessible to the average user who simply wants to hold and transfer a stable digital dollar equivalent without navigating the complexities of blockchain mechanics.
But is that really enough?
What makes TRON so special that it wouldn’t suffer the same fate as Ethereum with a competitor coming to eat their lunch.
Several EVM chains can offer cheaper stablecoin transfers, and even the Liquid Sidechain offers cheaper fees along with confidential transactions for better privacy. Meanwhile, Tether has stated they’ll be issuing tokens on Taproot assets soon.
So if this is going to be a game of fees, the race to the bottom is already going to close to the zero bounds, and if the majority of your customer base is fickle fee-sensitive users, you’re toast.
Opt for gaslighting-free instead of gas-free
As premine-holding individuals and companies continue to see their allocation of tokens get crushed in Bitcoin terms, you’ll see their desperation manifest in all kinds of marketing ploys.
They are going to promise you the moon and more, anything to get you to buy their coin and allow them to access liquidity in stable or Bitcoin.
My advice is don’t believe the hype.
Users should approach “gas-free” claims with healthy scepticism, understanding that costs in blockchain ecosystems are rarely eliminated—they’re simply shifted or hidden.
