Ethereum Reclaims Top Spot as Leading Blockchain for Tether (USDT)

Ethereum has overtaken Tron as the largest blockchain for Tether (USDT), the world’s largest stablecoin by market capitalization, following a 10% surge in USDT supply on Ethereum over the past week.

USDT Supply on Ethereum Surpasses Tron

According to data from DeFiLlama, USDT’s value on Ethereum has reached $60.3 billion, surpassing Tron’s $58.1 billion. This marks the first time since August 2022 that Ethereum has regained the top spot for USDT supply.

• Ethereum’s Growth: The USDT supply on Ethereum rose by 9.3% over the last week.
• Tron’s Decline: Tron saw a 1.5% decrease in its USDT supply during the same period.
• On November 23, Tether issued $2 billion USDT on Ethereum, compared to $1 billion on Tron, further solidifying Ethereum’s lead.

The Role of Stablecoins in Crypto Markets

Stablecoins like USDT are essential for the cryptocurrency ecosystem, providing the foundation for capital flow, trading liquidity, and tokenized real-world assets.

The current all-time high USDT supply of $132.9 billion signals robust demand and healthy market conditions:

• Ethereum’s Role: Often preferred by financial institutions for tokenizing USD-backed assets.
• Tron’s Role: Popular in high-inflation regions due to its low fees and high transaction speed, allowing individuals to store value in stablecoins.

USDT’s Standing Across Other Blockchains

Beyond Ethereum and Tron, the top blockchains for USDT supply include:

• BNB Chain: $4.58 billion

• Arbitrum: $3.09 billion
• Avalanche: $1.31 billion

Stablecoin Market Overview

USDT remains the dominant stablecoin, with a market capitalization of $132.3 billion, followed by Circle’s USD Coin (USDC) at $39 billion, according to CoinGecko.

Other notable stablecoins include USDS, Ethena USDe, and Dai, with valuations ranging from $5.3 billion to $3.5 billion.

However, Ethereum leads in USDC dominance as well, hosting 67.5% of USDC’s $26.3 billion market cap. Tron, meanwhile, has lagged behind in USDC supply since Circle and Binance ceased supporting USDC on Tron earlier this year.

Conclusion

Ethereum’s resurgence as the leading blockchain for USDT reflects its growing importance for institutional use cases and its ability to cater to the evolving needs of the stablecoin market. Meanwhile, Tron continues to serve as a valuable network for retail users, particularly in regions with high inflation.

This dynamic underscores the significance of both blockchains in the global cryptocurrency ecosystem as they cater to different segments of users and applications.

November 2024, Cryptoniteuae