Crypto Billionaire Justin Sun Teases Gas-Free Stablecoin Launch by Year’s End

Crypto Billionaire Justin Sun Teases Gas-Free Stablecoin Launch by Year’s End

Crypto billionaire Justin Sun has unveiled plans to introduce a gas-free stablecoin by the end of this year, a move that promises to make peer-to-peer transfers more accessible by eliminating transaction fees. Sun, the founder of Tron, shared this vision on social media platform X, announcing that the development will integrate with the Tron blockchain in the fourth quarter.

Gas-Free Stablecoin Innovation

Sun’s new stablecoin solution aims to revolutionize the stablecoin market by enabling transactions without the need for gas tokens, which are typically used to cover transaction fees. This innovative approach will have the fees covered by the stablecoins themselves, making transfers completely free for users.

“Our team is developing a new solution that enables gas-free stablecoin transfers,” Sun posted. “In other words, transfers can be made without paying any gas tokens, with the fees being entirely covered by the stablecoins themselves.”

Expansion Beyond Tron

After its initial implementation on the Tron network, Sun plans to extend this gas-free solution to Ethereum and other Ethereum Virtual Machine (EVM)-compatible blockchains. He believes that this development will significantly enhance the accessibility and adoption of blockchain technology by eliminating transaction costs, thereby making stablecoin services more attractive to a wider audience.

Currently, Tron leads the peer-to-peer stablecoin transfer market, processing two to three times more volume than Ethereum, its closest competitor. The introduction of this gas-free stablecoin could further consolidate Tron’s dominance and provide a competitive edge against other solutions like PayPal’s PYUSD, which offers fee-free cross-border payments for certain US users, and Circle’s USD Coin on Ethereum’s layer 2 Base via Coinbase Wallet, which also allows for free transfers.

Strategic Moves and Competition

Circle and cryptocurrency exchange Binance recently stopped supporting USDC on Tron, possibly prompting Sun to develop this new solution. Tron is also exploring a Bitcoin layer-2 solution to support a wrapped version of Tether, which could potentially bring substantial capital into the Bitcoin ecosystem. In the meantime, Tron is utilizing cross-chain protocols to bridge USDT and other tokens between the Bitcoin and Tron networks.

Shifting Stablecoin Holdings

Amid these developments, stablecoin holdings among both institutional and retail investors have seen a decline, dropping from 50.2% in December to 42.8% in May. Despite this, Bitcoin remains the largest single asset held by these investors, accounting for 26% of their total cryptocurrency assets as of May 2024. Retail traders, mirroring institutional trends, continue to favor Bitcoin over Ethereum, even amidst renewed optimism for ETH Spot ETFs.

Institutional holdings in Bitcoin and Ethereum are notably more concentrated than those of retail traders, with Bitcoin and Ethereum comprising 39.4% and 20.9% of institutional portfolios, respectively, as of May. Since the SEC’s approval of Bitcoin Spot ETFs in January 2024, institutional interest in Bitcoin has surged, while their holdings in Ether have surprisingly decreased. This trend suggests that institutions may prefer Bitcoin due to potential concerns about Ether Spot ETFs not including staking rewards.

Conversely, retail traders demonstrated adept market timing during the market correction between March and April 2024, showcasing their continued engagement and strategic investment behavior.

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