Ethereum reclaims the lead as the largest blockchain for USDT deployment

Ethereum has reclaimed its position as the largest blockchain for USDT deployment by surpassing Tron in supply. USDT supply on the ETH blockchain has grown by around $17 billion since May to $77 billion. 

The shift represents a reversal from earlier in May, when Tron temporarily held the lead with 48% supply compared to Ethereum’s 42%. The two blockchain networks have remained close competitors throughout the year, with between $75 billion and $80 billion supply levels. According to DeFiLlama data, Tron’s supply stands at $76.23 billion at the time of publication. 

Institutional adoption fuels ETH dominance as the preferred network for USDT

Retail traders have largely favored Tron for its low fees against Ethereum’s institutional-grade infrastructure with higher transfer fees. Despite that, ETH has maintained deep liquidity and an extensive DeFi ecosystem reach. Other notable chains include the BSC chain, which holds 7.48% of the USDT supply, and Plasma (XPL), with a supply of $4.37 billion. Solana has remained low, capturing only $2.1 billion of the USDT supply, according to data on DeFiLlama.

📈🔝 @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 📊 (@tokenterminal) September 26, 2025

Ethereum’s daily USDT transactions average around 400K, while overall network transactions surpassed 1.64 million today. This shows its active use in payments and settlements across the DeFi ecosystem. Tron, however, still dominates in terms of daily transactions. 

Institutional adoption of Ethereum has fueled the reversal, with companies like PayPal integrating PYUSD stablecoin into Ethereum, currently leading with $1.75 billion in supply. The scale of USDT volumes on Ethereum influences cross-chain bridge activity, liquidity provision, and exchange integration. Ethereum’s ability to capture institutional stablecoin flows positions it as the primary settlement layer for institutional financial applications as TradFi adopts blockchain-based payments.

Tether remains the global leader in the stablecoin market with a market cap of $174 billion. Circle’s USDC follows in the second position with $74 billion. The two tokens dominate the stablecoin market, although they have different strategies. 

GENIUS Act pushes broader stablecoin competition

Tether first launched in 2014 as RealCoin before changing that name later. It gained market traction quickly after becoming the preferred tool for moving money between different cryptocurrencies, mainly due to its speed of settlements and lower fees. It has also faced controversies, including regulatory fines and concerns over its reserves. The token has now grown to be offered on over 90 networks.

Circle’s USDC, launched in 2018, is focused on compliance and transparency. It publishes monthly attestations while maintaining a close partnership with American financial institutions. Circle went public in June, listing on the New York Stock Exchange (NYSE) and raising over $1 billion on its IPO. The firm has positioned itself as the regulated alternative to Tether.

The U.S. regulatory framework has boosted the growth in stablecoin competition. The GENIUS Act, signed into law by President Trump in July, established a comprehensive standard for stablecoins to meet. Cryptopolitan covered the story, highlighting that the act requires stablecoin firms to disclose monthly public reserves, third-party attestations, and strict limitations on asset composition. Circle was already largely compliant with these requirements. Tether has, however, is launching another U.S.-compliant token, USAT, while issuing USDT for the global market. 

Tether has managed to maintain strong financial results, with billions in quarterly profits generated mainly from its holdings of U.S. Treasuries. The firm has established itself as one of the largest holders of U.S. debt, with more than $24 billion invested in short-term Treasury bills since July. Circle’s USDC, however, is lagging mainly due to its revenue-sharing model with partners, despite gaining institutional trust due to its transparency and regulatory compliance.