Ethereum USDT regained dominance over Tron after 2 years

After a 10% increase in USDT supply on Ethereum last week, Ethereum has surpassed Tron, the largest stablecoin for Tether.

The US dollar-backed stablecoin Tether (USDT) is worth $60.3 billion on Ethereum, compared to Tron's $58.1 billion, according to Defilama data.

USDT's supply on Tron fell 1.5% last week, while Ethereum rose 9.3%, helping to push Tron up for the first time since August 2022.

The increase in USDT supply — currently at a record high of $132.9 billion — could be a big sign as the stablecoin serves as the backbone for trading liquidity and capital flows in the broader cryptocurrency ecosystem.

Ethereum is the main chain used by financial institutions to simulate US dollar-backed real-world assets, while Tron's low-fee and high-speed chain has helped many people save in high-inflation currencies like USDT.

Ethereum regained its first position on November 21, and on November 23, Tether separated from Tron at $2 billion compared to $1 billion on Tron.

BNB Chain, Arbitrum and Avalanche rounded out the top five with US$4.58 billion, US$3.09 billion and US$1.31 billion respectively.

USDT is currently 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), Athena USD (USDE) and DAI (DAI) round out the top five with a market cap of $5.3 billion to $3.5 billion.

Related: Stablecoins and the Dollar: Partners or Opponents in the New Financial Era?

Tether claimed to have reached 350 million users on October 7, equivalent to 4.2% of the world's population.

Ethereum leads USDC dominance with $26.3 billion or 67.5% of USDDC market cap.

However, following Tron Circle and Binance's decision to end USDC support on Tron in February and March, Tron was no longer a competitor to USDC-dominated Ethereum.

Journal: Unstable Coins: Debasement, Bankruptcy and Other Risks Looming.