Ethereum (ETH) Sensationally Surpasses Tron (TRX) in USDT Supply

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As a seasoned crypto investor with a decade of experience under my belt, I can confidently say that the recent shift in the U.S. Dollar Tether (USDT) supply from Tron (TRX) to Ethereum (ETH) is a significant milestone. Having witnessed the high transactional fees on Ethereum and its subsequent flip by TRX back in August 2022, I must admit I was skeptical about the network’s ability to regain its footing. But the reduction in gas fees through numerous upgrades has proven me wrong, and I couldn’t be happier!

For the first time in several months, starting from August 2022, Ethereum (ETH) holds more U.S. Dollar Tether (USDT) than Tron (TRX). At the same time, the combined value of all USD-backed stablecoins is approaching a new record high above $200 billion. In just one year, the market cap of USDT has increased by 50%.

$68 billion milestone: Ethereum replaces Tron as key USDT blockchain

For the first time in nearly two years, more U.S. Dollar Tether (USDT), the world’s largest stablecoin and third-largest cryptocurrency by market capitalization, is being held on the Ethereum (ETH) network than on the Tron blockchain. This represents a significant change in its distribution pattern.

At the current moment, the maximum supply of Tether on the Ethereum network stands at approximately $68.4 billion. Conversely, the supply on the Tron network for USDT (TRC-20 USDT) has decreased to around $60.1 billion. It’s worth noting that in August 2022, Tron surpassed Ethereum by this metric due to Ethereum’s high transaction fees, which made it less attractive for users.

Most transactions of USDT on Tron (TRX) incurred only a minor fee of around $1. Over the past year, several improvements have led to a significant decrease in Ethereum (ETH) transaction costs.

Also, another flippening for USDT is on the menu: the stablecoin supply on TON is ready to exceed that of Avalanche (AVAX).

At the moment, there’s approximately 1.3 billion dollars worth of assets on the Avalanche (AVAX) network, whereas a similar amount, about 1.22 billion dollars, has been generated through minting on the Ton (TON) blockchain.

USD stablecoins eye $200 billion market cap

On August 17, 2023, Tether declared that it will cease to use the Omni, SLP, and Kusama blockchain platforms for issuing United States Dollar Tether (USDT) as of that date.

Instead, USDT added support for TON blockchain in Q1, 2024. In less than one year, TON’s USDT cap jumped from $10 million to over $1.2 billion.

With the much-awaited bull run in cryptocurrency markets heating up, the market cap of leading centralized stablecoins is poised to reach a fresh all-time high of around $200 billion.

Major stablecoins USDT and USDC have increased their caps by over 50% in the past 12 months.

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2024-11-26 18:13