The competition between Ethereum and Tron for dominance in the stablecoin market is intensifying again. According to Arkham Intelligence, Tether, the world’s largest stablecoin issuer, minted an additional $1 billion USDT on the Tron network on May 5.
This recent issuance has increased Tron’s total USDT circulation to $71.4 billion, narrowing the gap with Ethereum, which currently holds $72.8 billion in USDT, as reported in the Tether Transparency report.
With only $1.4 billion separating the two blockchains, Tron is on the brink of reclaiming its position as the leading network for Tether, a title it previously held from July 2022 until a major $18 billion mint on Ethereum in late 2024 flipped the standings, as reported by CryptoQuant.
Solana has $1.9 billion in USDT circulation, ranking third behind other networks. Tether’s USDT supply has reached a record $149.4 billion, an 8.6% increase since January 2025, solidifying its 61% market share in the stablecoin sector, according to CoinGecko data.
The growth in stablecoin issuance reflects a broader trend in the crypto space—stablecoins now account for 8% of the entire cryptocurrency market capitalization. Expectations of imminent regulatory clarity in the United States are fueling the expansion.
The U.S. Treasury Department, in a recent report, projected that the stablecoin market could balloon to $2 trillion by 2028, contingent on the passage of key legislation. Two bills are currently in focus: the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which outlines reserve and operational requirements for issuers, and the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which covers the oversight of nonbank payment stablecoin providers.
Reports suggest the U.S. Senate could vote on the GENIUS Act before May 26. Meanwhile, Tether is preparing to launch a U.S.-based stablecoin later this year, which hinges on how swiftly the legislative process unfolds.
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