Ethereum Overtakes Tron as the Leading Network for USDT Supply

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

Over the past month, Tether issued $20 billion in USDT on the network, possibly marking it as the go-to blockchain for activity involving the fiat-pegged cryptocurrency.

Strategic Expansion

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

Additional information from another blockchain analysis platform, Lookonchain, indicates that the surge in USDT minting started on November 6. Since then, Tether has been issuing between $1 billion and $2 billion of stablecoins every few days across Ethereum and Tron, with the former accounting for the lion’s share.

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

Furthermore, commentators like DCinvestor on X have suggested that the uptick is just the beginning. They predict that Ethereum’s stablecoin supply could go up exponentially, potentially reaching as high as $1 trillion by the end of 2025. If it became a reality, this growth would represent a massive boost to the network’s overall economy, even cementing its position as the backbone of decentralized finance (DeFi).

USDT’s Dominance

According to DefiLlama data, Tether has continued to expand its issuance, controlling more than 69% of the $201 billion stablecoin market. In Q4 2024, records revealed that about 109 million wallets held the asset, more than double those holding Bitcoin and less than 20 million behind those with Ethereum.

Additionally, the issuer registered more than 4.5 billion web hits in the first 9 months of the year, with emerging markets accounting for nearly half that number.

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

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

Attempts to reverse USDT’s hegemony aren’t limited to USDC. Not long ago, several crypto companies, including Robinhood, Kraken, Galaxy Digital, and Paxos, came together to support the development of the Global Dollar (USDG). Its proponents claim the asset will help speed up the adoption of such instruments around the world.