Ethereum has resumed its position as the leading blockchain for the Tether stablecoin (USDT), surpassing Tron for the first time in more than two years. This transition occurred on November 21, 2024, after Ethereum’s USDT supply increased by 9.3% in just one week, totaling $60.3 billion. In contrast, the supply of USDT on Tron decreased by 1.5%, to $58.1 billion.
The latest growth in USDT on Ethereum is part of a larger increase in the stablecoin’s total supply, which just reached a new high of $132.9 billion. Stablecoins, such as USDT, play an important role in promoting liquidity and capital flow in the cryptocurrency market, laying the groundwork for trading across many platforms.
Financial institutions’ continued acceptance of Ethereum, particularly for tokenizing US dollar-backed assets, contributes to its return to dominance. Ethereum has long been a popular alternative for such applications, helping to consolidate its market position. Meanwhile, Tron remains popular in areas with significant inflation due to its low fees and rapid transaction rates, making it perfect for users wishing to store value in stablecoins.
On November 23, Tether generated $2 billion in USDT on Ethereum, compared to only $1 billion on Tron, widening the disparity between the two. As Ethereum consolidates its position, other blockchains like BNB Chain, Arbitrum, and Avalanche join the top five in USDT supply, albeit with significantly smaller amounts.
Despite this transition, USDT remains the largest stablecoin by market capitalization, with a total of $132.3 billion, greatly outpacing competitors such as USD Coin (USDC) at $39 billion. Ethereum also leads the USDC market with 67.5% of the supply, while Tron’s engagement has declined as big players have dropped support for the coin on their networks.
The move indicates that Ethereum-based financial applications will continue to flourish and blockchain technology will establish itself as a driving force in the global digital economy, with Ethereum once again leading the charge in USDT domination.
