Originally published on: November 26, 2024
Ethereum has once again emerged as the leading blockchain for the Tether stablecoin, surpassing Tron after a significant increase in USDT supply on Ethereum in the past week.
According to data from DefiLlama, there is now a total of $60.3 billion worth of USDT on Ethereum, compared to Tron’s $58.1 billion. This shift marks the first time Ethereum has overtaken Tron in USDT dominance since August 2022.
With Ethereum and Tron holding 45.4% and 43.7% shares of USDT dominance respectively, the increase in USDT supply on Ethereum signals a bullish trend for the broader cryptocurrency ecosystem. Stablecoins like USDT play a crucial role in providing trading liquidity and facilitating capital flow in the market.
Financial institutions have predominantly used Ethereum to tokenize real-world assets backed by the US dollar, while Tron’s low-fee and high-speed chain has attracted users looking to save in stablecoins, especially in high-inflation regions.
The surge in USDT supply has propelled Ethereum to the top position, with Tether minting $2 billion USDT on Ethereum on Nov. 23 compared to $1 billion on Tron. Other blockchains like BNB Chain, Arbitrum, and Avalanche follow closely with their USDT supplies.
As the world’s largest stablecoin with a market capitalization of $132.3 billion, USDT is followed by USD Coin (USDC) at $39 billion, according to CoinGecko data. Ethereum also dominates in USDC supply with $26.3 billion, representing 67.5% of USDC’s market cap.
While Ethereum continues to lead in stablecoin dominance, Tron’s support for USDC dwindled after major platforms like Circle and Binance ceased their USDC support on Tron earlier this year.
Tether recently announced reaching 350 million users, highlighting the widespread adoption of stablecoins globally. The rise of Ethereum in USDT dominance reaffirms its position as a key player in the cryptocurrency market.
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