Ethereum has reclaimed its dominance in USDT supply, with more of the stablecoin now hosted on the Ethereum blockchain than on Tron’s for the first time since June 2022.
As of publication time, 66.936 billion USDT are in circulation on Ethereum, compared to 61.77 billion on Tron. Year-to-date, USDT supply on Ethereum has grown nearly 62%, while Tron has experienced a more modest increase of 24.4% over the same period.
The flippening comes on the heels of a surge in USDT minting activity this past week.
The cause of the dramatic increase in USDT supply on Ethereum may be simply due to bullish market conditions as Bitcoin recently smashed through its all-time high, reigniting retail and institutional interest.
This momentum has been amplified by growing anticipation around the approval of spot Bitcoin ETFs, a development widely seen as a gateway for institutional capital. Such a backdrop creates fertile ground for stablecoins like USDT, which serve as the backbone for trading liquidity and capital flow across the crypto ecosystem.
Ethereum’s enduring appeal for USDT issuance is also tied to its DeFi dominance and institutional adoption, as it remains the go-to chain for stablecoin liquidity in the industry.
On the other hand, Tron’s role as a transactional workhorse — favored for its low fees and speed — remains critical, particularly in remittance-heavy regions.
This is an excerpt from The Block's Data & Insights newsletter. Dig into the numbers making up the industry's most thought-provoking trends.
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