With cryptocurrencies coming back into the spotlight, many are looking at different options for diversifying their portfolio. Over the years, Tron has slowly risen to become one of the most respectable and widely used blockchains on the market.
At the same time, in times of high volatility, one might want to have the option of retreating into safer assets like USDT. In this article, we take a look at USDT vs TRX to see which one you should consider in the near future.
To achieve this, we analyze the benefits of TRX and USDT and assess what makes them interesting investment vehicles. In addition, we provide historical price analysis for TRX as well as price predictions from reputable sources around the internet.
What Is Known About USDT?
USDT is a stablecoin that is issued by the Tether company. It entered the market in 2015, which makes it one of the oldest stablecoins in the industry. USDT is pegged to the US Dollar, which means that 1 USDT should always be equal to 1 USD.
The company that issues USDT achieves this by minting an equal amount of the cryptocurrency for the cash and cash-equivalent reserves they possess. This ensures that users can always claim $1 for every USDT they own.
In the past, some controversies have plagued the Tether company, due to the lack of transparency regarding their reserves. However, Tether has recently started providing more transparent books regarding their backing of the USDT, increasing trust in their platform.
Additionally, it acts as an intermediary when you want to exchange FTM to BNB, in case the exchange doesn’t offer a direct trading pair.
Stablecoin Benefits
Since their price is stable, stablecoins can be used as a shield against volatility. For example, traders can quickly exit their risky positions and conserve their gains. Once they see an opportunity, they can reenter their position, and make a significant profit, without having to exit the cryptocurrency ecosystem.
Moreover, stablecoins like USDT are widely accepted on different crypto exchanges. This allows users to move in and out of exchanges and find new opportunities.
In addition, they are great for payments, as they conserve the speed of blockchain transactions, without the risk of price fluctuation. As a result, you can transfer money abroad with minimal costs, almost instantly.
What Is TRX?
Tron is the brainchild of Justin Sun, one of the most controversial personas in the cryptocurrency industry. Without a doubt, Tron’s creator has managed to market his project perfectly, as the chain has gained incredible traction over the years.
Tron is an EVM blockchain that provides fast and cheap transactions by relying on a delegated proof of stake consensus. Users delegate their tokens to super representatives, who, in turn, verify transactions and create blocks.
The Tron blockchain has become very popular for launching scalable decentralized applications as well as money transfers. For instance, USDT transfers on Tron cost a fraction of a cent, which makes it a popular payment network.
TRX Marketing History
TRX benefitted from the 2017 bull run and was considered one of the highest performers at that time. The token went from $0.002 to $0.2, offering early backers quick 100x gains. Unfortunately, the price crashed soon thereafter, plummeting to $0.01 during the bear market.
That said, TRX experienced a stark revival, reaching $0.16 in April 2021. Even though the price retraced significantly in 2022, it has been steadily growing in 2023. Currently, the token is trading at around $0.06.
TRX Price Prediction
Priceprediction.net provides strong bullish targets for TRX in the near future. The website expects it to reach $0.1 in 2023, and as high as $0.21 in 2025.
Digitalcoinprice.com provides similar forecasts, with $0.15 for 2023 and $0.25 for 2025.
USDT vs TRX: What to Choose?
If you are looking to make some profits, Tron (TRX) is the clear winner here. USDT is a stablecoin and can be your go-to asset for market entries and exits. However, it remains heavily impacted by inflation, and keeping your capital in USDT in the long term will result in a reduction of your purchasing power.
Tron, on the other hand, has great growth potential and could provide some decent profits in the upcoming bull market.