Following a fierce two-year competition, Ethereum [ETH] has successfully regained its dominant position as the primary blockchain for Tether [USDT] utilization, surpassing Tron [TRX].
Based on recent market statistics, Ethereum now commands 44.56% of the Tether supply, edging out Tron’s 42.97%.
This transition signifies a significant milestone for Ethereum and carries broad implications for the blockchain landscape.
Ethereum vs. Tron: Analyzing the Data
An examination by CryptoCrypto of DefiLlama’s data illustrated the prevalence of Ethereum and Tron in the stablecoin sector.
While Ethereum and Tron jointly held more than 87% of Tether’s market segment, alternative blockchains like Binance Smart Chain [BSC] at 3.52% and Arbitrum [ARB] at 2.24%, controlled notably smaller shares.
This highlights the concentrated competition in the stablecoin domain, with Ethereum and Tron leading the charge.
Tron had consistently maintained a lead in USDT transactions, supported by its economical transaction costs and efficient network.
However, Ethereum’s resurgence can be attributed to its transition to a proof-of-stake (PoS) system post the Merge, coupled with subsequent enhancements that significantly reduced gas fees.
A further analysis of the chart from IntoTheBlock unveiled Ethereum’s surge commencing around the 6th of November, eventually aligning with Tron by the 17th of November.
Trends in Active Addresses
An evaluation of active addresses via Dune Analytics revealed a captivating narrative of user engagement on both blockchains.
Ethereum displayed a consistent upward trend, maintaining over 1.5 million daily active addresses, excluding smart contract interactions.
This sustained growth showcases Ethereum’s versatility beyond stablecoins, encompassing applications in DeFi, NFTs, and gaming.
Conversely, Tron witnessed a relatively erratic pattern in active addresses, marked by substantial peaks and valleys over time.
Despite these fluctuations, Tron remains a formidable player, boasting almost double the count of active addresses on record.
As per an analysis of the Dune charts, Ethereum has witnessed over 6 million active addresses in the last 30 days, while Tron boasts a figure exceeding 40 million.
Impact on the Stablecoin Sector
Ethereum’s restored dominance in Tether supply signifies its escalating competitiveness in the stablecoin landscape, particularly among institutional users.
The network’s scalability and reduced fee structures seem to be yielding results, enticing back users who had shifted to more cost-effective alternatives like Tron.
Meanwhile, Tron’s near-equivalence with Ethereum highlights a healthy rivalry that benefits the broader blockchain community.
Its emphasis on affordability and inclusivity ensures that it retains a substantial market stake, addressing demographics underserved by Ethereum’s historically high expenses.
At present, USDT commands over 70% of the stablecoin market shares, with a market capitalization in excess of $133 billion.