Tether's USDT Supply Hits $156.1 Billion All-Time High Driven by Ethereum and Tron Networks

Tether's USDT stablecoin has reached an unprecedented milestone, with its supply hitting an all-time high of $156.1 billion. This significant increase is predominantly driven by the Ethereum and Tron networks, which together account for 90% of the total USDT supply. Specifically, 50.47% of USDT is circulating on the Tron network, while approximately 40% is on Ethereum. The remaining 10% is distributed across various other blockchains, including BNB Chain, Solana, Cosmos, and Avalanche.

Despite the growing popularity of Circle's USDC on smaller chains, USDT maintains its dominant position in the stablecoin market. USDC, for instance, has a substantial presence on Solana, with nearly $7.5 billion in circulation compared to USDT's $2.3 billion. However, USDT's market share remains robust, accounting for 62.10% of the total stablecoin supply, while USDC holds around 24%.

The dominance of USDT has faced some challenges, particularly with the implementation of the European Union’s MiCA stablecoin regulations, which led to a temporary dip in its market share. In response, Tether chose to withdraw from the European market, discontinuing its EURT stablecoin and facing delistings on several major exchanges. Tether's leadership has also been reluctant to provide full reserve transparency, which has raised concerns among regulators and market participants.

Looking ahead, the future of USDT remains uncertain, especially with the potential passage of the U.S. GENIUS Act, which could impose new regulatory challenges. However, experts are divided on whether this legislation will force Tether out of the U.S. market. For now, Tether's strategic focus is on the Asian market, where it continues to be a preferred option for crypto payments, particularly on the Tron network. This regional focus may help Tether navigate the evolving regulatory landscape and maintain its market leadership.