Ethereum Surpasses Tron in USDT Dominance After 2 Years

Ethereum has made a big comeback against Tron, taking back the top spot on Nov. 21 and continuing to widen the lead ever since. In the last week, there has been a 10% increase in the supply of USDT on Ethereum, making it the leading blockchain for the Tether stablecoin with $60.3 billion compared to Tron’s $58.1 billion, according to DefiLlama data.

Over the same period, USDT supply on Tron has dropped by 1.5%, while Ethereum has seen a 9.3% increase, allowing it to surpass Tron for the first time since August 2022. Ethereum and Tron now hold 45.4% and 43.7% of USDT dominance, respectively, according to DefiLlama.

The total USDT supply has reached an all-time high of $132.9 billion, signaling positive market sentiment, as stablecoins play a key role in providing liquidity and facilitating capital flow in the broader cryptocurrency ecosystem. Ethereum has been the preferred platform for financial institutions to tokenize real-world assets backed by the US dollar, while Tron’s efficient, low-fee network has attracted users in high-inflation countries looking to save in stablecoins like USDT.

In another significant development, Tether minted $2 billion USDT on Ethereum compared to $1 billion on Tron on Nov. 23, further solidifying Ethereum’s lead. BNB Chain, Arbitrum, and Avalanche trail behind in the top five with $4.58 billion, $3.09 billion, and $1.31 billion worth of USDT supply, respectively.

With a market capitalization of $132.3 billion, USDT remains the largest stablecoin globally, followed by Circle’s USD Coin (USDC) at $39 billion. Other contenders in the top five include USDS (USDS), Ethena USDe (USDE), and Dai (DAI) with market caps ranging from $5.3 billion to $3.5 billion, according to CoinGecko data.

Ethereum also leads in USDC dominance with $26.3 billion, representing 67.5% of USDC’s market cap. Although Tron used to be a competitor in USDC dominance, Circle and Binance’s decision to stop supporting USDC on Tron in February and March has shifted the dynamics in Ethereum’s favor.

The rise of stablecoins like USDT and USDC underscores their importance in the evolving financial landscape, providing a stable and reliable alternative to traditional currencies. Tether’s milestone of reaching 350 million users on Oct. 7, equivalent to 4.2% of the global population, highlights the widespread adoption of stablecoins as a preferred medium of exchange.