Tron Narrows USDT Gap With Ethereum, Adds $1B
1min read Tron has made significant strides in narrowing the gap with Ethereum in terms of Tether (USDT) circulation. On May 5, Tether minted an additional $1 billion USDT on the tron network, bringing the total USDT on Tron to $71.4 billion. This development positions Tron to potentially reclaim its lead over Ethereum, which currently has $72.8 billion USDT in circulation. Tron had previously held the lead in USDT circulation from July 2022 to November 2024, but a substantial $18 billion mint on Ethereum temporarily shifted the balance.
The competition between Tron and Ethereum for USDT circulation highlights the dynamic nature of the stablecoin market. Tron's recent minting activity suggests a strategic move to regain its dominance, which could have implications for the broader stablecoin ecosystem. The total circulation of USDT has reached a record high of $149.4 billion, reflecting an 8.6% increase since the beginning of the year. This growth underscores the increasing demand for stablecoins, which now represent 8% of the total crypto market capitalization.
Tether's market share remains robust at 61%, with its closest competitor, Circle, holding 25% of the market with nearly $62 billion USDC in circulation. The stablecoin market's expansion is further supported by regulatory developments. The United States Treasury Department has predicted that the stablecoin market could reach $2 trillion by 2028 if regulatory clarity is achieved. Two key pieces of legislation, the GENIUS Act and the STABLE Act, are currently under consideration in the US Congress. These bills aim to provide clear definitions and reserve rules for stablecoin issuers, as well as govern the approval and supervision of federally qualified nonbank payment stablecoin issuers.
Tether's strategic moves and the regulatory landscape suggest a continued focus on stablecoin innovation and market expansion. The company is also planning to launch a US-based stablecoin later this year, contingent on the passage of relevant legislation. This development could further solidify Tether's position in the stablecoin market and influence the competitive dynamics between different blockchain networks.
