Tether [USDT] has minted another substantial $1 billion in USDT, but this time on the Tron [TRX] network – a move that has reignited debates over Ethereum’s [ETH] longstanding dominance in the stablecoin sector. As Tron continues to attract high-volume transactions with lower fees and faster processing speeds, many are questioning whether Ethereum’s supremacy is finally at risk.
ARKHAM ALERT: $1,000,000,000 USDT MINTED JUST NOW pic.twitter.com/h2JTETn8QM
— Arkham (@arkham) May 5, 2025
Is Tron Gaining the Upper Hand in the Stablecoin Battle?
Tron has steadily been eating into Ethereum’s market share in the stablecoin space. As of May 2025, Ethereum still hosts approximately $74.5 billion in USDT, but Tron is nearly closing the gap, with its USDT supply now just a fraction below Ethereum’s. This narrowing margin is particularly notable given Tron’s rapid rise since early 2022, which has seen the network consistently gain traction in stablecoin transactions.
With Tether’s latest $1 billion mint on Tron, analysts suggest that the network could soon surpass Ethereum in the stablecoin hierarchy. Tron’s competitive edge is largely driven by its lower transaction fees and higher transaction speeds – factors that have proven increasingly attractive to stablecoin issuers and users alike.
Tron’s Transaction Surge: A Sign of Growing Dominance?
In the past year, Tron’s daily transaction count has surged from around 6 million to consistently exceeding 9 million, with occasional spikes approaching 11 million. This sustained growth highlights rising adoption and utility, particularly for USDT transfers, reinforcing TRX’s position as a leading network for stablecoin transactions.
The sharp increase in transaction volume since January 2025 further underscores the growing appeal of Tron’s lower fees and faster speeds, especially in contrast to Ethereum’s higher gas costs.
Also Read: Tether Prints $8 Billion USDT: Analyzing the Impact on Bitcoin and Altcoin Markets
Will Ethereum Reclaim Its Stablecoin Throne?
Ethereum’s high gas fees remain a significant drawback, making it less appealing for stablecoin transactions compared to Tron. Unless Ethereum addresses its scalability issues and reduces costs beyond Layer 2 solutions, it may continue to lose ground to Tron and other emerging networks.
The next few months could be crucial in determining whether Tron will finally overtake Ethereum as the leading network for USDT and other stablecoins, potentially reshaping the stablecoin landscape.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
