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, possibly 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.

Additional information from another blockchain analysis platform, Lookonchain, indicates that the surge in USDT minting started on November 6. Since then, Tether has been issuing between $1 billion and $2 billion of stablecoins every few days across Ethereum and Tron, with the former accounting for the lion’s share.

The trend is more than just numbers. Some analysts imply it is a nod to the reputation of the platform co-founded by Vitalik Buterin as a “trusted” and socially reputable network—a critical factor for institutional adoption.

Furthermore, commentators like DCinvestor on X have suggested that the uptick is just the beginning. They predict that Ethereum’s stablecoin supply could go up exponentially, potentially reaching as high as $1 trillion by the end of 2025. If it became a reality, this growth would represent a massive boost to the network’s overall economy, even cementing its position as the backbone of decentralized finance (DeFi).

USDT’s Dominance

According to DefiLlama data, Tether has continued to expand its issuance, controlling more than 69% of the $201 billion stablecoin market. In Q4 2024, records revealed that about 109 million wallets held the asset, more than dou