The total supply of stablecoin USDT on Tron has surpassed that of Ethereum for the first time. Currently, Tron stands at $73.8 billion compared to $71.9 billion on Ethereum.
Reasons for Tron’s Success
Tron’s triumph didn’t happen overnight. The network has seen consistent and large-scale USDT issuance since mid-2023, exceeding $1 billion per month. Key success factors include low transaction costs, high throughput capacity, and nearly perfect uptime.
Ethereum’s Challenges
USDT issuance on Ethereum has stalled, even though this platform remains central to decentralized finance (DeFi). Following an exponential rise at the end of 2024, a downward trend emerged. Increasing gas costs have pushed traders towards cheaper Layer-2 solutions such as Arbitrum and Optimism.
Stablecoin Utilization Prospects
This event highlights the growing efficiency in the use of stablecoins. With Tether gaining traction in global remittance and trading, networks providing affordable and secure executions are stepping into the spotlight. High performance and low costs position Tron as an ideal facilitator for extensive USDT use.
While Ethereum remains a leader in smart contract flexibility, the increase in USDT supply on Tron signals a strengthening trend. This situation may indicate a potential reshaping of the Layer-1 and Layer-2 landscape in the stablecoin market.
