Crypto News – Tron Poised to Overtake Ethereum in Stablecoin Race: Can Ethereum Keep Up?

Crypto News – Tron’s Explosive Growth in Stablecoins: Is Ethereum Losing the Battle?

Crypto News – Tether (USDT) has recently minted another massive $1 billion in USDT, this time on the Tron (TRX) network, sparking fresh debates over whether Ethereum’s (ETH) long-held dominance in the stablecoin ecosystem is finally under threat. As Tron continues to attract high-volume transactions with lower fees and faster speeds, it’s raising questions about whether Ethereum’s supremacy in the stablecoin market is at risk.

Tron Approaching Ethereum in USDT Supply

As of May 2025, Ethereum hosts approximately $74.5 billion in USDT, but Tron is rapidly catching up. The latest data shows Tron is just slightly behind Ethereum in total USDT supply, with its rise since early 2022 steadily eating into Ethereum’s lead. Meanwhile, Ethereum’s USDT supply has plateaued, and even dipped slightly in recent months, while Tether’s latest $1 billion mint on Tron positions it to potentially overtake Ethereum in the near future.

Tron’s Explosive Growth in Transaction Volume

Tron’s transaction trend has been accelerating over the past year, with daily transactions rising from around 6 million to consistently exceeding 9 million, occasionally spiking near 11 million. Since January 2025, this growth has surged, signaling increased utility and adoption. Tron has thus solidified its position as the leading network for stablecoin transactions, particularly for USDT transfers.

Ethereum’s High Gas Fees Fuel Competition

Ethereum’s high gas fees are creating a competitive disadvantage for the network. For stablecoin issuers like Tether, and everyday users, the cost of minting, transferring, and interacting with USDT on Ethereum is much higher than on Tron. Consequently, issuers are opting for cheaper alternatives, and users are flocking to more efficient networks. Unless Ethereum improves scalability and significantly reduces costs, Tron and other faster, more affordable networks may overtake it in the stablecoin race.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.