Following a fierce two-year rivalry, Ethereum [ETH] has officially regained its position as the dominant blockchain for Tether [USDT], surpassing Tron [TRX].
Recent market data indicates that Ethereum now commands 44.56% of the Tether supply, edging ahead of Tron’s 42.97%.
This shift represents a significant milestone for Ethereum with far-reaching implications for the blockchain landscape.
Ethereum vs. Tron: Delving Into the Statistics
An examination of DefiLlama’s data by CryptoCrypto unveiled the extent of Ethereum and Tron’s influence in the stablecoin sector.
Although Ethereum and Tron jointly held over 87% of Tether’s market share, other blockchains such as Binance Smart Chain [BSC] at 3.52% and Arbitrum [ARB] at 2.24% had notably smaller shares.
This underscores the oligopoly entrenched in the stablecoin domain, with Ethereum and Tron leading the pack.
Tron had maintained a consistent lead in USDT transactions thanks to its cost-effective transaction fees and efficient network.
Nevertheless, Ethereum’s resurgence can be attributed to its adoption of a proof-of-stake (PoS) mechanism post-Merge, along with subsequent upgrades that notably reduced gas fees.
Further scrutiny of the data from IntoTheBlock revealed that Ethereum’s momentum started building around November 6th, and by November 17th, it had caught up with Tron.
Trends in Active Addresses
Insights from Dune Analytics on active addresses painted an intriguing portrait of user engagement on both chains.
Ethereum continued on a steady upward trajectory, sustaining over 1.5 million daily active addresses, excluding smart contract interactions.
This consistent expansion showcases Ethereum’s versatility beyond stablecoins, encompassing DeFi, NFTs, and gaming.
Conversely, Tron witnessed relatively erratic fluctuations in active addresses, marked by significant peaks and troughs over time.
Despite these fluctuations, Tron remains a formidable contender, boasting nearly double the active addresses compared to Ethereum.
Based on the analysis of the Dune charts, Ethereum recorded over 6 million active addresses in the last 30 days, whereas Tron surpassed 40 million.
Implications for the Stablecoin Sector
Ethereum’s resurgence in Tether supply dominance underlines its growing competitiveness in the stablecoin arena, especially among institutional users.
The improvements in network scalability and fee reductions appear to be paying dividends, attracting back users who had migrated to more economical alternatives like Tron.
Meanwhile, Tron’s nearly equal footing with Ethereum showcases a healthy competition that benefits the broader blockchain community.
Its focus on cost-effectiveness and inclusivity ensures that it retains a significant market share, catering to demographics previously underserved due to Ethereum’s high costs.
As of the latest data, USDT accounts for over 70% of the stablecoin market share, with a market capitalization exceeding $133 billion.