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 for stablecoin dominance.

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

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 nearly double the active lending on protocols like Aave.

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

The trend is more than numbers. Some analysts imply that 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.

Moreover, commentators such as DCinvestor on X have suggested that the increase is only the beginning. They predict that Ethereum’s stablecoin supply could grow exponentially, even reaching as much as $1 trillion by the end of 2025. If it were to come true, this growth would represent a massive boost to the global economy. network, even consolidating its position as a backbone. of decentralized finance (DeFi).

Domain of the 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 about 109 million wallets held the asset, more than double those holding Bitcoin and less than 20 million behind those holding Ethereum.

In addition, the issuer recorded more than 4.5 billion web visits in the first 9 months of the year, with emerging markets accounting for almost half of this number.

With a presence on 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, in an attempt to challenge Tether’s dominance.

While the details of the collaboration remain scarce, it is intended to expand the global adoption of the 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, came together to support the development of the global dollar (USDG). Its proponents claim that the asset will help accelerate the adoption of these instruments worldwide.

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