Ethereum overtakes Tron as leading network for USDT supply

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

Over the past month, Tether has issued $20 billion in USDT on the network, making it perhaps the go-to blockchain for activities involving fiat cryptocurrency.

Strategic expansion

Figures shared by 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 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 issued between $1 billion and $2 billion worth of stablecoins every few days on Ethereum and Tron, with the former accounting for the lion’s share.

The trend is not limited to numbers. Some analysts suggest this 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 rise is just the beginning. They predict that Ethereum’s stablecoin supply could increase exponentially, potentially reaching $1 trillion by the end of 2025. If this becomes a reality, this growth would represent a huge boost for the the overall economy of the network, even consolidating its position as the backbone. of decentralized finance (DeFi).

USDT Dominance

According to data from DefiLlama, Tether has continued to expand its issuance, controlling over 69% of the $201 billion stablecoin market. As of Q4 2024, records revealed that approximately 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 internet visits in the first nine months of the year, with emerging markets accounting for almost half of that figure.

Present in over 80 blockchain networks, USDT currently has a market capitalization 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 Tether’s dominance.

Although details of the collaboration remain scarce, it aims to expand global adoption of USDC. Binance will integrate the stablecoin into its full range of products and services, making it accessible to its base of 240 million users.

Attempts to overthrow 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 supporters say this asset will help accelerate the adoption of such instruments around the world.