Tether's USDT stablecoin has reached an all-time high supply of approximately $156.1 billion, with around 90% of this supply concentrated on two blockchain networks: Tron and Ethereum. Specifically, over half (50.47%) of USDT supply circulates on Tron (TRX), while nearly 40% resides on Ethereum (ETH). Less than 10% of USDT tokens are distributed across other chains such as BNB Chain, Solana, Cosmos, and Avalanche.
The rapid growth in USDT supply underscores its crucial role in cryptocurrency trading, offering a stable medium of exchange amid market volatility. USDT presently accounts for 62.10% of stablecoin supply across all blockchains, substantially outpacing competitors like Circle's USDC, which holds around 24%. However, USDT experienced a dip in market dominance toward the end of 2024 triggered by new European Union regulations under the MiCA framework, which led to Tether withdrawing some products and delisting on several exchanges rather than pursuing compliance.
Meanwhile, USDC is gaining traction on smaller blockchains, for example, Solana hosts nearly $7.5 billion in USDC compared to $2.3 billion in USDT. Despite regulatory challenges, Tether remains dominant globally, focusing its market strategy primarily on Asia, where it is a preferred crypto payment vehicle, particularly on the Tron network.
The surge in USDT supply has significantly boosted liquidity across centralized and decentralized exchanges, facilitating trading activity for major cryptocurrencies including Bitcoin (BTC) and Ethereum (ETH). Tether’s CEO, Paolo Ardoino, is central to the company’s global expansion and strategic positioning. The milestone reflects strong demand for stablecoins as trading instruments that offer risk mitigation and reliable value storage during periods of crypto market instability.
Looking ahead, regulatory developments like the U.S. GENIUS Act could pose future challenges for Tether, but experts remain uncertain if it will displace USDT’s market dominance. For now, the increased issuance of USDT enhances capital flows and reduces transaction costs, strengthening its pivotal role within digital asset trading ecosystems.