Ethereum regains USDT dominance over Tron after two years.

This milestone marks Ethereum’s return to dominance in the stablecoin space, with the gap between the two blockchains widening further in the following days. The change was driven by a 10% increase in USDT supply on Ethereum over the past week, allowing it to overtake Tron’s previously leading position for the first time since August 2022.

According to data from DefiLlama, the total USDT supply on Ethereum now stands at $60.3 billion, compared to Tron’s $58.1 billion. Over the past week, Ethereum experienced a 9.3% surge in its USDT supply, while Tron saw a decline of 1.5%. 

This shift signals a potentially bullish trend for Ethereum, as stablecoins like USDT play a critical role in providing liquidity and facilitating capital flows across the broader cryptocurrency ecosystem. The overall supply of USDT has also reached a new all-time high of $132.9 billion, further emphasizing the growing demand for stablecoins.

Ethereum has long been the blockchain of choice for financial institutions looking to tokenize real-world assets backed by US dollars. Its robust ecosystem, widespread adoption, and security features have made it a trusted platform for such initiatives. 

In contrast, Tron has gained popularity for its low transaction fees and high-speed network, which have made it a preferred choice for users in countries experiencing high inflation, where stablecoins like USDT are often used as a hedge against currency devaluation.

The competition between the two blockchains intensified on November 23, when Tether minted $2 billion worth of USDT on Ethereum compared to $1 billion on Tron. This additional issuance has further solidified Ethereum’s lead, demonstrating its growing dominance in the stablecoin market.

Other prominent blockchains supporting USDT include BNB Chain ($4.58 billion in supply), Arbitrum ($3.09 billion), and Avalanche ($1.31 billion). Despite the competition, USDT remains the world’s largest stablecoin by a significant margin, boasting a market capitalization of $132.3 billion. 

Its closest rival, Circle’s USD Coin (USDC), has a market cap of $39 billion, while other stablecoins such as USDS, Ethena USDe, and Dai round out the top five with market caps between $3.5 billion and $5.3 billion.

Tether’s growth extends beyond blockchain dominance; the company recently announced that it had reached 350 million users as of October 7, representing approximately 4.2% of the global population. This underscores the widespread adoption of stablecoins as a critical component of the digital economy.

In addition to leading the USDT market, Ethereum also dominates USDC issuance, holding $26.3 billion or 67.5% of USDC’s total market cap. In contrast, Tron has not been a significant player in USDC adoption, partly due to Circle and Binance’s decisions to discontinue support for USDC on the Tron network earlier this year. These developments further highlight Ethereum’s position as a foundational blockchain for stablecoin activity and its pivotal role in the broader cryptocurrency ecosystem.