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Ethereum’s recent reclaiming of Tether (USDT) dominance showcases its evolving ecosystem and competitive edge over Tron (TRX).
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This change signifies a pivotal moment in the blockchain landscape, with Ethereum accounting for 44.56% of Tether supply, compared to Tron’s 42.97%.
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According to a source from COINOTAG, Ethereum’s resurgence is bolstered by its efficient transition to a proof-of-stake model.
Ethereum reclaims Tether dominance with 44.56% supply, surpassing Tron. This shift impacts the stablecoin landscape significantly.
Ethereum vs. Tron: Breaking down the numbers
COINOTAG’s analysis of DefiLlama’s chart revealed the extent of Ethereum and Tron’s dominance in the stablecoin market. While Ethereum and Tron collectively held over 87% of Tether’s market share, other blockchains, including Binance Smart Chain [BSC] at 3.52% and Arbitrum [ARB] at 2.24%, held significantly smaller portions. This underscores the duopoly in the stablecoin space, with Ethereum and Tron at the forefront.
Source: IntoTheBlock
Tron had consistently been ahead in USDT transactions, buoyed by its low transaction fees and efficient network. However, Ethereum’s resurgence can be attributed to its shift to a proof-of-stake (PoS) mechanism following the Merge and subsequent upgrades that have significantly reduced gas fees. Additional analysis of the chart from IntoTheBlock showed that Ethereum began gaining momentum around the 6th of November. By the 17th of November, it had leveled with Tron.
Active address trends
Analysis of active addresses on Dune Analytics painted an intriguing picture of user activity on both blockchains. Ethereum continued to exhibit a steady upward trajectory, maintaining over 1.5 million daily active addresses, excluding smart contract interactions. This consistent growth highlights Ethereum’s utility beyond stablecoins, including DeFi, NFTs, and gaming.
Source: DuneAnalytics
On the other hand, Tron experienced a relatively volatile trend in active addresses, with significant spikes and troughs over time. Despite these fluctuations, Tron remains a strong contender, with almost double the number of active addresses recorded. According to an analysis of the Dune charts, active addresses on Ethereum in the last 30 days are over 6 million, while Tron has over 40 million.
Source: Dune Analytics
Implications for the stablecoin market
Ethereum’s regained dominance in Tether supply signals its increasing competitiveness in the stablecoin market, particularly for institutional users. The network’s scalability and fee reduction improvements appear to be paying off, luring back users who migrated to cheaper alternatives like Tron. Meanwhile, Tron’s near-parity with Ethereum suggests a healthy rivalry that benefits the broader blockchain ecosystem.
Read Ethereum’s [ETH] Price Prediction 2024–2025
Its focus on affordability and accessibility ensures that it retains a substantial market share, catering to demographics underserved by Ethereum’s previously high costs. As of this writing, USDT holds over 70% of the stablecoin market share, with an over $133 billion market capitalization.
Conclusion
In conclusion, Ethereum’s reclaiming of Tether dominance not only highlights its robust expansion efforts but also points to a significant recalibration in the stablecoin ecosystem. This competitive tension between Ethereum and Tron is essential for fostering innovation and driving more users into the crypto space. The future landscape will depend on how both platforms continue to adapt and evolve in response to user needs.
