Ethereum Overtakes Tron as Leading Network for USDT Supply

Ethereum has become the leading blockchain for Tether’s USDT supply, surpassing Tron in a monumental shift toward stablecoin dominance.

Over the past month, Tether has issued $20 billion worth of USDT on the network, possibly marking it as the go-to blockchain for fiat-pegged cryptocurrency-related activities.

Strategic expansion

Figures shared by on-chain data platform Token Terminal show that the issuance of $20 billion of Tether on the world’s largest blockchain by total value locked is almost double the active lending on protocols like Aave.

Additional information from another blockchain analysis platform, Lookonchain, indicates that the increase in USDT minting began on November 6. Since then, Tether has been issuing between $1 billion and $2 billion in stablecoins every few days on Ethereum and Tron, with the former accounting for the majority.

The trend is more than just numbers. Some analysts imply that it is a nod to the reputation of the platform co-founded by Vitalik Buterin as a “trustworthy” and socially respectable network, a critical factor for institutional adoption.

Additionally, commenters like DCinvestor on suggested that the rebound is just the beginning. They predict that Ethereum’s stablecoin supply could increase exponentially, potentially reaching as much as $1 trillion by the end of 2025. If realized, this growth would represent a massive boost to the network’s overall economy, even cementing its position as a backbone. . of decentralized finance (DeFi).

The dominance of USDT

According to data from DefiLlama, Tether has continued to expand its issuance, controlling more than 69% of the $201 billion stablecoin market. In the fourth quarter of 2024, records revealed that around 109 million wallets held the asset, more than double those holding Bitcoin and less than 20 million behind those holding Ethereum.

Additionally, the issuer recorded more than 4.5 billion web visits in the first nine months of the year, with emerging markets accounting for almost half of that figure.

With a presence on over 80 blockchain networks, USDT currently has a market cap of $140 billion, up 12.55% over the past month. Its closest competitor, USD Coin (USDC), valued at $41.5 billion, recently signed a strategic partnership with Binance, seeking to challenge Tether’s dominance.

While details of the collaboration remain scarce, it aims to expand global adoption of USDC. Binance will incorporate the stablecoin into its full suite of products and services, making it accessible to its 240 million user base.

Attempts to reverse USDT hegemony are not limited to USDC. Not long ago, several crypto companies including Robinhood, Kraken, Galaxy Digital, and Paxos joined together to support the development of the global dollar (USDG). Proponents claim that the asset will help accelerate the adoption of such instruments around the world.