Stablecoin dominance is basically the first step towards DeFi dominance. The logic is simple: networks with more stablecoins locked on-chain have greater liquidity, allowing for smoother trading, lending, and borrowing.
Notably, since Tether (USDT) alone represents 60% of the stablecoin market, this gives the networks hosting it a relatively stronger foundation. Looking at the L1s, it’s clear that they are strategizing around this advantage.
According to DeFiLlama, TRON (TRX) has officially overtaken Ethereum (ETH) in terms of USDT dominance, capturing 44.97% compared to ETH’s 44.56%. This has reinforced the idea that stablecoins are becoming a critical battleground.
Source: DeFiLlama
Zooming out, USDT’s growing share of TRON is even more evident. Over the past month, TRX’s USDT supply jumped 3.62%, reaching 83.49 billion. Meanwhile, Ethereum saw a 5.6% decline over the same period, falling to 82.74 billion.
What makes this interesting is the timing. TRON’s USDT growth occurs in a risk-free market, where major assets are correcting. Ethereum, for example, slipped 15.36% during the month to reach its lowest level in several months.
In comparison, TRX limited its losses to 2.6%, raising the question: Is TRON positioning itself as a more resilient DeFi hub, able to withstand volatility better than ETH thanks to its growing base of stablecoins?
TRON emerges as DeFi rail amid stablecoin race
Liquidity is what really drives DeFi’s dominance.
Analysts are talking about a “stable coin war” between L1s. TRON is making moves, grabbing more dominance from USDT, but Ethereum’s total value locked (TVL) of $58 billion still eclipses TRON’s $4 billion.
In other words, Ethereum remains the essential hub for global “liquidity”. That said, locked TRX just reached a record 46.2 billion, or 48% of the total supply – a sign that TRON is quietly building a strong and resilient DeFi foundation.
Source: CryptoQuant
In comparison, Ethereum’s blocked supply sits at around 30%.
From a technical perspective, TRON’s higher staking rate reduces circulating supply pressure, helping it to hold up better in volatile markets. At the same time, more stablecoins are circulating in its ecosystem.
Together, the high stakes and liquidity of USDT create a flywheel: staked tokens cap volatility, while stablecoin dominance attracts more users. As a result, TRON is quietly becoming the DeFi rail, now going by Justin Sun.
Final Thoughts
- TRON captured 44.97% of USDT compared to 44.56% for Ethereum, highlighting the growing importance of stablecoins in DeFi.
- With 48% of TRX locked and USDT flows rising, TRON is building a DeFi flywheel that reduces volatility and attracts users.
