Mantle's Stablecoin Reserve Surges, ETH Contribution Tops $388M, MNT Jumps 25%

Mantle's stablecoin has surged 22.85% in the past 7 days, reaching $653.51M. The platform has been listed on the Strategic ETH Reserve, contributing 101,867 ETH ($388M). Meanwhile, the MNT token has jumped 25%.

Tether's USDT to Launch on Plasma Blockchain

Tether's USDT stablecoin is set to move to its own blockchain called Plasma, aiming to attract users with zero fees on transfers. This development could significantly impact Tron, the current host of the majority of USDT in circulation. According to crypto bank Sygnum, Tron's revenue dominance is heavily reliant on USDT transfers, which may be threatened by Tether's Plasma chain launch [1]. Two analysts also expressed concerns about Tron's position in the stablecoin market [1].

Bitfinex's Support for Plasma

Bitfinex, a sister company to Tether, is backing the Plasma blockchain. The blockchain recently raised $373 million by selling its native XPL token and is set to go live with $1 billion worth of deposits. This move is part of stablecoin issuers' efforts to capitalize on stablecoin usage and issuance [1].

Market Implications

Tron hosts $81 billion worth of USDT and handles 60% of all stablecoin transfers. The rising fees on the Tron network, which have more than doubled to over $7 for USDT transfers, may create a gap for competitors like Plasma. Nader Dirany, co-founder of Buy Bitcoin Lebanon, noted that Tron's success is closely tied to USDT's popularity [1]. Amir Hajian, a researcher at Keyrock, believes Plasma is following a similar playbook to replicate Tron's success, potentially scaling USDT liquidity [1].

Ethereum's Institutional Gains

Ethereum treasury entities now hold more than $10 billion worth of ETH, marking a significant milestone in the cryptocurrency's institutional adoption. As of late July 2025, 64 entities collectively control approximately 2.73 million ETH, valued at around $10.49 billion [2]. Leading the accumulation efforts are publicly traded companies such as Bitmine Immersion Tech, Sharplink Gaming, and The Ether Machine. Other notable holders include DeFi protocols, crypto-native organizations, and even government entities like the U.S. government and the Royal Government of Bhutan [2].

Impact on Ethereum and Tron

Paige Horinek, analytics lead at Serotonin, noted that a scenario where Ethereum loses 30% of USDT use to Plasma could cost the blockchain $230,000 to $370,000 in lost fees every day. Tron, on the other hand, stands to lose $1.6 million to $2.1 million per day in missed TRX token burning. However, the impact might be felt more on Ethereum as it is currently inflationary, meaning it issues more new Ether tokens than are burned to pay for transactions. Conversely, Tron mints less than it burns, so its supply keeps shrinking [1]. Hajian isn't convinced Plasma will steal much USDT use from Ethereum, as Ethereum's power users are less sensitive to high fees [1].

Crypto Market Overview

The crypto market started the week positively, with Bitcoin (BTC) and other cryptocurrencies trading in the green. BTC rebounded from a low of $114,000 to reclaim $114,886, while Ethereum (ETH) rebounded to reclaim $3,500 and move to $3,526 [3]. Ripple (XRP), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) also registered notable increases, while Toncoin (TON) traded in the red [3].

Traditional Finance's Blockchain Pivot

Traditional financial institutions (TradFi) are increasingly investing in blockchain startups. Citigroup, JPMorgan Chase, Goldman Sachs, and Japan’s SBI Group have been at the forefront of this pivot, making over 345 investments in blockchain companies, with several in early-stage funding rounds [3].

References

[1] https://finance.yahoo.com/news/tether-usdt-getting-own-zero-100825240.html
[2] https://www.ainvest.com/news/ethereum-news-today-ethereum-treasury-holdings-top-10-billion-institutional-demand-surges-2508/
[3] https://cryptodaily.co.uk/2025/08/crypto-price-analysis-8-4-bitcoin-btc-ethereum-eth-solana-sol-uniswap-uni-ondo-finance-ondo