Ethereum Reclaims Dominance Over Tether (USDT) Supply, Surpassing Tron After Two Years

Ethereum reclaimed its position as the leading blockchain for Tether (USDT), overtaking Tron for the first time since August 2022. This shift is driven by a notable 10% increase in USDT supply on Ethereum over the past week, signaling renewed strength for the network.

As of the latest data from DeFiLlama, Ethereum now hosts $60.3 billion worth of USDT, surpassing Tron’s $58.1 billion. The increase on Ethereum is in stark contrast to a 1.5% decline in USDT supply on Tron, while Ethereum has seen a 9.3% rise. This change comes as the total supply of USDT reaches an all-time high of $132.9 billion, underscoring the growing role of stablecoins in driving liquidity and capital flow within the cryptocurrency ecosystem.

The Growing Role of Stablecoins in the Market

Stablecoins like USDT are integral to the broader crypto market, acting as a bridge for trading, capital flows, and liquidity. Ethereum has long been the primary blockchain for financial institutions tokenizing US dollar-backed real-world assets. In contrast, Tron, known for its low fees and high transaction speeds, has gained popularity, especially in high-inflation regions, as a platform for saving in stablecoins.

Since reclaiming the top spot on November 21, Ethereum has continued to widen the gap. On November 23, Tether minted $2 billion worth of USDT on Ethereum, compared to just $1 billion on Tron. Ethereum’s dominance in USDT supply is now solidified, but Tron still remains a significant player.

Other Blockchains and Stablecoins in the Race

Following Ethereum and Tron, BNB Chain, Arbitrum, and Avalanche are the next largest chains in terms of USDT supply, with $4.58 billion, $3.09 billion, and $1.31 billion, respectively.

USDT remains by far the largest stablecoin by market capitalization, currently valued at $132.3 billion. It is followed by USD Coin (USDC) from Circle, with a market cap of $39 billion. Other notable stablecoins include USDS, Ethena USDe, and Dai (DAI), which each have market caps ranging from $5.3 billion to $3.5 billion.

Ethereum Also Leads in USDC Market Share

Ethereum's dominance extends beyond USDT. As of now, Ethereum holds $26.3 billion worth of USDC, or 67.5% of USDC’s total market capitalization, further reinforcing its position as the leading platform for stablecoin activity.

However, Tron has not posed a significant challenge to Ethereum’s dominance in the USDC market. This is largely due to Circle and Binance's decision earlier this year to discontinue support for USDC on Tron, a move that left Ethereum as the primary chain for USDC transactions.

Tether's Expanding Reach

Tether’s influence continues to grow. On October 7, the company announced it reached 350 million users, which equates to approximately 4.2% of the global population. As stablecoins continue to play a central role in cryptocurrency trading and institutional adoption, Ethereum’s renewed dominance in USDT supply could be seen as a bullish sign for the broader crypto market.