tl;dr
Ethereum has surpassed Tron as the leading blockchain for Tether's USDT supply, with $20 billion issued in the past month. This shift signifies Ethereum as the go-to blockchain for the fiat-pegged cryptocurrency, potentially reaching a stablecoin supply of $1 trillion by 2025. Tether's dominance is ...
Ethereum has emerged as the leading blockchain for Tether’s USDT supply, surpassing Tron in a monumental shift for stablecoin dominance. Over the past month, Tether issued $20 billion in USDT on the network, potentially marking it as the go-to blockchain for activity involving the fiat-pegged cryptocurrency.
Strategic Expansion: Figures shared by the on-chain data platform Token Terminal show that Tether’s $20 billion issuance on the world’s largest blockchain by total value locked is nearly twice the active loans on protocols like Aave. Additionally, the surge in USDT minting started on November 6. Some analysts imply this shift is a nod to Ethereum’s trusted and reputable network, a critical factor for institutional adoption. Predictions suggest Ethereum’s stablecoin supply could reach $1 trillion by the end of 2025, cementing its position as the backbone of decentralized finance (DeFi).
USDT’s Dominance: Tether controls over 69% of the stablecoin market, with a market cap of $140 billion, up 12.55% in the last month. USD Coin (USDC) aims to challenge this dominance through a strategic partnership with Binance, and the development of the Global Dollar (USDG) seeks to reduce USDT’s hegemony.
While Ethereum’s rise and Tether’s dominance shape the current landscape, the dynamic nature of the market suggests potential shifts and innovations on the horizon. As stablecoins continue to play a pivotal role in the crypto sphere, their evolution and market dynamics will be a focal point for investors and enthusiasts alike.