Ethereum has become the leading blockchain for Tether’s USDT stablecoin, overtaking Tron after Tether minted $20 billion in USDT on Ethereum over the past month. This shift highlights Ethereum’s growing role in the decentralized finance (DeFi) sector.
Blockchain analytics platforms Token Terminal and Lookonchain revealed that Tether has been minting $1-2 billion in USDT every few days since November 6, with the majority being issued on Ethereum. Analysts attribute the shift to Ethereum’s status as a trusted, institutional-grade network.
Industry insiders, including DeFi advocate DCinvestor, predict that Ethereum’s USDT supply could reach $1 trillion by 2025, further solidifying its role as the backbone of DeFi.
USDT now dominates 69% of the $201 billion stablecoin market, with over 109 million wallets holding the asset. Tether’s market cap has risen to $140 billion, growing 12.55% in the past month.
Meanwhile, competition in the stablecoin market is heating up. Binance has partnered with USD Coin (USDC) to promote its adoption across Binance’s 240 million users. A consortium including Robinhood, Kraken, Galaxy Digital, and Paxos has also introduced a new stablecoin, Global Dollar (USDG), to challenge Tether’s dominance.
With Ethereum’s leading USDT issuance and rival stablecoins entering the market, the DeFi landscape is poised for significant transformation in the coming years.
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