Ethereum is once again the primary blockchain for USDT, surpassing Tron in the amount of USDT it holds. Since May, the USDT supply on the Ethereum network has risen by approximately $17 billion, reaching a total of $77 billion.
This development marks a shift from earlier in the year. Back in May, Tron had briefly taken the lead, holding 48% of the total USDT supply compared to Ethereum’s 42%. Throughout the year, the two networks have been closely competing, maintaining supply levels between $75 billion and $80 billion. Currently, according to data from DeFiLlama, Tron’s USDT supply is at $76.23 billion.
Institutional Adoption Drives Ethereum’s Lead as the Preferred USDT Network
While retail traders often favor Tron due to its lower transaction fees, Ethereum attracts institutional interest with its robust infrastructure and broader DeFi ecosystem. Despite higher transaction costs, Ethereum offers deep liquidity and extensive DeFi integrations. Other notable blockchains include Binance Smart Chain (BSC), holding 7.48% of the USDT supply, and Plasma (XPL), with a supply of $4.37 billion. Solana holds a smaller share, with $2.1 billion of the USDT supply, according to DeFiLlama data.
📈🔝 @Tether_to‘s USDT on @ethereum is back as the biggest stablecoin deployment by supply.
The supply of USDT on Ethereum has increased by ~$17 billion since May. pic.twitter.com/1wS2RZ1FA3
— Token Terminal @ TOKEN2049 🇸🇬 (@tokenterminal) September 26, 2025
USDT transactions on the Ethereum network average approximately 400,000 daily, with total network transactions exceeding 1.64 million, demonstrating its widespread use for payments and settlements within the DeFi landscape. While Ethereum leads in USDT supply, Tron still handles a larger volume of daily transactions.
The resurgence of Ethereum’s dominance is driven by institutional adoption. Companies like PayPal integrating their PYUSD stablecoin with Ethereum, which now holds $1.75 billion in supply, are contributing to this trend. The substantial USDT volume on Ethereum is key for cross-chain transfers, providing liquidity, and facilitating exchange integrations. As traditional finance embraces blockchain-based payments, Ethereum’s capacity to attract institutional stablecoin flows makes it a primary settlement layer for institutional financial applications.
Tether continues to be the global leader in the stablecoin market, boasting a market capitalization of $174 billion. Circle’s USDC follows with $74 billion. These two tokens dominate the stablecoin landscape, albeit with differing strategies.
Regulation Fuels Increased Competition in the Stablecoin Market
Tether was initially launched in 2014 as RealCoin before rebranding. It quickly gained popularity as a preferred tool for transferring funds between various cryptocurrencies, primarily due to its rapid settlement times and lower fees. However, it has also faced controversies, including regulatory fines and concerns regarding its reserves. Today, USDT is available on over 90 blockchain networks.
Circle’s USDC, introduced in 2018, prioritizes compliance and transparency. It publishes monthly attestations and maintains a strong partnership with established financial institutions in the United States. Circle became a publicly traded company in June, listing on the New York Stock Exchange (NYSE) and raising over $1 billion through its IPO. The company positions itself as a regulated alternative to Tether.
The U.S. regulatory environment has played a significant role in fostering increased competition within the stablecoin market. The GENIUS Act, signed into law established guidelines for stablecoins. Cryptopolitan previously covered this event, noting the act’s requirement for stablecoin firms to publish monthly reserve reports, provide third-party attestations, and adhere to strict asset composition rules. Circle was already mostly compliant with these requirements. Tether, in response, is launching another U.S.-compliant token, USAT, while continuing to issue USDT for the global market.
Tether has demonstrated strong financial performance, reporting billions in quarterly profits, largely generated from its holdings of U.S. Treasury securities. The company is now one of the largest holders of U.S. debt, with over $24 billion invested in short-term Treasury bills since July. Circle’s USDC, however, is experiencing slower growth, primarily due to its revenue-sharing model with partners, despite the increased institutional trust it enjoys due to its transparency and regulatory compliance.
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