A Change in the Dominance of Stablecoins
A significant shift in the stablecoin industry has occurred as Ethereum has surpassed Tron to become the main blockchain for Tether’s USDT supply. Tether established itself as the leading network for USDT platform transactions in November when it issued an incredible $20 billion in USDT on Ethereum.
Examining Blockchain Data in More Detail
The $20 billion issuance on Ethereum, the largest blockchain by total value locked, greatly outpaces the activity on protocols like Aave, according to on-chain data from Token Terminal. This rise started on November 6, according to further information from blockchain analysis site Lookonchain. Tether issued between $1 billion and $2 billion in stablecoins every few days, mostly on Ethereum and Tron.
Leading Position in the Stablecoin Market
According to DefiLlama data, Tether has maintained its issuance growth and now holds more than 69% of the $201 billion stablecoin market. USDT is more than twice as popular as Bitcoin and is closely followed by Ethereum, with about 109 million wallets holding the cryptocurrency.
Increasing Worldwide Presence
Nearly half of the more than 4.5 billion web hits that Tether logged in the first nine months of 2024 were from emerging markets. Operating across over 80 blockchain networks, USDT is currently valued at $140 billion and has experienced growth rates of 12% to 55% in the last month.
Increasing Competition: USDC’s Strategic Action
USD Coin (USDC), which is worth $41.5 billion, has partnered with Binance in order to challenge Tether’s hegemony. The partnership intends to increase USDC’s worldwide adoption, notwithstanding the paucity of specifics. Binance is providing its 240 million users globally with access to USDC by incorporating it into its range of goods and services.
The Growing Significance of Ethereum in the Stablecoin Ecosystem
Ethereum’s rise to the top of the USDT blockchain highlights its expanding clout in the stablecoin market. Strategic alliances like the one between USDC and Binance could bring about new dynamics in this fiercely competitive market, even as Tether keeps growing its dominance.
