Tron's Stablecoin Supply Surges, Nears Ethereum's Dominance

Tron, a blockchain platform renowned for its high throughput and low transaction costs, is rapidly gaining traction in the stablecoin market. The platform's increasing stablecoin supply reflects a robust demand for value transfer and settlement use cases. This surge in demand is driven by users seeking more efficient and cost-effective alternatives to traditional stablecoin platforms.

Ask Aime: Why is Tron's stablecoin market share growing?

Tron's resilience is further demonstrated by its rising decentralized exchange (DEX) volume, which recently hit a yearly high. This growth is accompanied by a stablecoin market cap approaching $72 billion, with Tron's native token, TRX, trading at approximately $0.247. The platform's ability to process over $50 billion in USDT transfers per month on-chain has solidified its lead in stablecoin settlements, making it a formidable competitor in the market.

Ethereum, the current leader in stablecoin dominance, has recently experienced a price decline. This price drop, coupled with Tron's rising user demand and lower costs, positions tron to potentially approach Ethereum's stablecoin dominance. The shift in user preference towards Tron is likely due to its lower transaction fees and faster settlement times, which are crucial for stablecoin transactions.

Tron's collaboration with various partners and its focus on stablecoin settlements have further enhanced its market position. The platform's ability to generate significant daily revenue through stablecoin transfers and its niche in perpetual trading has contributed to its growing dominance. As user demand for efficient and cost-effective stablecoin solutions continues to rise, Tron is well-positioned to challenge Ethereum's leadership in the stablecoin market.

Tether has minted another massive $1 billion in USDT on the Tron network, facilitating fresh debate over whether Ethereum’s long-held dominance in the stablecoin ecosystem is finally slipping. As Tron continues to attract high-volume transactions with lower fees and faster speeds, this latest move signals a potential shift in power that puts Ethereum’s supremacy at risk.

Ask Aime: Is Tron poised to challenge Ethereum's stablecoin dominance?

After years of Ethereum dominance, the latest data shows Tron is rapidly catching up in total USDT supply and may be on the verge of overtaking. As of May 2025, Ethereum hosts approximately $74.5 billion in USDT, but Tron is nearly neck-and-neck, just a fraction below. The chart reveals Tron’s relentless rise since early 2022, steadily eating into Ethereum’s lead. Ethereum’s USDT supply, by contrast, has plateaued and even dipped slightly in recent months. With Tether’s latest $1 billion mint on Tron, the network appears poised to finally flip Ethereum in the stablecoin hierarchy.

Over the past year, daily transaction counts on Tron have increased steadily, rising from around 6 million to consistently exceeding nine million, with occasional spikes nearing eleven million. Since January 2025, this growth has accelerated, indicating rising utility and adoption. This sustained high volume reinforces TRX’s position as the leading network for stablecoin transactions, particularly for USDT transfers.

Ethereum’s high gas fees are creating a competitive disadvantage for the network. For stablecoin issuers and everyday users, the cost of minting, transferring, and interacting with USDT on Ethereum remains much higher than on Tron. As a result, issuers are choosing cheaper networks, and users are following liquidity and efficiency. Unless Ethereum significantly improves scalability and reduces costs beyond Layer 2 solutions, it risks being overtaken by faster, more affordable alternatives.

This shifting landscape indicates that Ethereum may need to rethink its operational strategies to maintain its edge in the stablecoin market. As more users gravitate towards the benefits of lower fees and faster transactions on networks like Tron, Ethereum’s current model must evolve or face the consequences of declining market share.