Ethereum News Today: USDC Dominates Ethereum, USDT Surges on TRON as Stablecoin Supply Hits $271.1B

Stablecoin activity in August 2025 reveals a fragmented yet robust market, with USDC dominating Ethereum and USDT surging on TRON. The total stablecoin supply has reached $271.1 billion, a figure that underscores the ongoing importance of stablecoins in facilitating on-chain settlements and decentralized finance (DeFi) transactions [1]. USDC’s strong performance on Ethereum is attributed to its deep integration with DeFi protocols, transparent reserve disclosures, and focused ERC-20 integrations. On a 7-day average, USDC processes more than $20 billion in daily transfers, significantly outpacing USDT’s $12–$15 billion range [1].

Meanwhile, USDT has seen a shift in activity toward TRON and BSC, driven by lower network fees and large retail inflows, particularly through major exchanges like Binance, Bybit, and HTX. Over one million USDT-TRC20 transactions were recorded in a seven-day window, marking the highest volume in months. This trend indicates that retail users are increasingly favoring TRON for frequent on-chain transfers [1]. USDT still maintains a dominant position overall, holding approximately 60% of on-chain transfer activity by some indexes, but its stronghold is now more pronounced on non-Ethereum chains [1].

The emergence of new regulated stablecoins is also beginning to shape the market. USD1, a stablecoin launched under the GENIUS Act—a recent U.S. regulatory initiative—saw a $23 million mint on August 6, 2025, signaling early adoption driven by compliance-focused investors. While USD1’s supply remains modest compared to USDC and USDT, its regulated structure positions it as a potential niche option for institutional use and cross-border transactions [1].

The divergence in stablecoin activity highlights how different blockchain networks are attracting specific use cases and user behaviors. Ethereum remains the hub for DeFi activity, with USDC processing the majority of stablecoin transactions in lending, automated market makers (AMMs), and native stablecoin rails. On the other hand, TRON’s cost-effectiveness and high transaction throughput make it ideal for retail-driven stablecoin movement, particularly for USDT [1].

Data from on-chain analytics firms like CryptoOnChain and CryptoQuant further supports this division, showing that USDC’s share of Ethereum stablecoin transfers exceeds 50%, while DAI holds roughly 26% [1]. These metrics reflect the ongoing maturity of the stablecoin market and its role as a foundational asset in the crypto ecosystem.

As the stablecoin landscape evolves, market participants are advised to monitor on-chain transfer metrics and exchange deposit flows for signs of network-specific dominance. The interplay between liquidity, regulatory clarity, and network efficiency continues to dictate where stablecoins gain traction, with USDC and USDT currently leading the way on Ethereum and TRON, respectively.

Sources:

[1] Stablecoin dominance 2025 — USDC leads on Ethereum while USDT rules TRON; total market $271.1B. Read the latest data and expert context from COINOTAG. (https://en.coinotag.com/usdc-could-be-leading-ethereum-stablecoin-activity-as-overall-supply-nears-271-billion-and-usdt-surges-on-tron/)