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TRON's USDT Circulation Hits Record $71 Billion, Narrowing Gap With Ethereum

Coin WorldMonday, May 5, 2025 8:40 am ET

1min read

The tron network has achieved a significant milestone by setting a new all-time high for the amount of USDT (Tether) circulating on its platform. This development underscores TRON's growing influence in the stablecoin payment sector and its increasing competition with Ethereum, which currently hosts $74.5 billion USDT in circulation. TRON's market cap for USDT has reached a record high of over $71 billion, narrowing the gap with Ethereum in terms of USDT usage.

This achievement is particularly noteworthy given that the total stablecoin market capitalization stands at $242 billion, with Tether (USDT) accounting for $149 billion. This means TRON facilitates smooth transactions for 29% of the stablecoin market cap and 47% of USDT’s market cap. Additionally, TRON accounts for 28% of all active stablecoin wallet addresses, making it the top chain in terms of fee revenue.

Analysts predict that stablecoins will attract strong venture capital interest in the future, with the number of issuers potentially growing tenfold. New issuers may choose TRON, which would benefit a blockchain capable of handling $150 billion in weekly stablecoin transaction volume. This prediction highlights the potential for TRON to further solidify its position in the stablecoin market.

Furthermore, the number of long-term holders on TRON has exceeded 2.66 million addresses, reflecting strong confidence and long-term commitment from retail investors. These wallets maintain balances of at least 10 TRX, indicating sustained engagement and potential liquidity resilience. However, some investors argue that TRON's vitality relies too heavily on USDT transactions, which could significantly impact the network and the price of TRX if there are any strategic changes in the TRON–Tether relationship.

Despite these concerns, the growing number of long-term holders suggests that TRON has a loyal user base that believes in the network's potential. This loyalty could support TRX’s price in the long run, although the network's utility outside the USDT space remains a point of contention. TRON lags behind other chains in areas such as meme coin deployment, decentralized exchange (DEX) trading volume, and real-world asset (RWA) market share.

In summary, TRON's new USDT record and the growing number of long-term holders indicate a strong and loyal user base. However, the network's reliance on USDT transactions and its limited utility in other areas pose challenges that TRON must address to maintain its competitive edge in the stablecoin market. As the stablecoin market continues to evolve, TRON's ability to adapt and innovate will be crucial to its long-term success.

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