Ethereum has overtaken Tron as the biggest blockchain for the Tether stablecoin after a 10% increase in the supply of USDT on Ethereum over the last week.
There is now $60.3 billion worth of the United States dollar-backed stablecoin Tether (USDT) on Ethereum compared to Tron’s $58.1 billion, DefiLlama data shows.
USDT supply on Tron has fallen 1.5% over the last week, while Ethereum has increased 9.3%, helping it oust Tron for the first time since August 2022.
Ethereum and Tron lead USDT dominance with respective shares of 45.4% and 43.7%. Source: DefiLlama
The rise in USDT supply — which is at a current all-time high of $132.9 billion — could be a bullish signal as stablecoins serve as the backbone for trading liquidity and capital flow throughout the broader cryptocurrency ecosystem.
Ethereum has been the main chain used by financial institutions to tokenize US dollar-backed real-world assets, while Tron’s low-fee, higher-speed chain has helped many people save in stablecoins like USDT in high-inflation countries.
Ethereum reclaimed first position on Nov. 21, and it separated from Tron further on Nov. 23 when Tether minted $2 billion USDT on Ethereum compared to $1 billion on Tron.
BNB Chain, Arbitrum and Avalanche round out the top five with $4.58 billion, $3.09 billion and $1.31 billion worth of USDT supply.
Ethereum (purple) reclaimed USDT dominance from Tron (green) for the first time since August 2022. Source: DefiLlama
USDT is by far the world’s largest stablecoin with a market capitalization of $132.3 billion, followed by Circle’s USD Coin (USDC) at $39 billion, CoinGecko data shows.
USDS (USDS), Ethena USDe (USDE) and Dai (DAI) round out the top five with market caps between $5.3 billion and $3.5 billion.
Related: Stablecoins and the dollar: Allies or adversaries in the new financial era?
Tether said it reached 350 million users on Oct. 7, which equates to 4.2% of the world’s population.
Ethereum also leads USDC dominance with $26.3 billion, or 67.5% of USDC’s market cap.
However, Tron hasn’t been a competitor to Ethereum in USDC dominance following Circle and Binance’s decision to drop support for USDC on Tron in February and March.
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