The Tron network is gaining ground in the competition for Tether circulation, thanks to a recent significant minting event by Tether, the world’s leading stablecoin issuer. On May 5, Tether minted another $1 billion in Tether (USDT) on the Tron network, according to data from Arkham Intelligence. This strategic move increases the total USDT on Tron to $71.4 billion. In comparison, Ethereum currently holds $72.8 billion in USDT circulation, creating a narrow margin of $1.4 billion that separates the two networks.
Historically, Tron has held the lead over Ethereum in USDT circulation from July 2022 to November 2024, only to be surpassed by Ethereum following a substantial $18 billion mint. As the stablecoin market continues to evolve, Tron’s ability to reclaim its position as the leading network for Tether signals the competitiveness and importance of stablecoins in the crypto ecosystem.
Solana, with $1.9 billion in circulating USDT, stands as the third-largest network for this digital asset, while smaller amounts are also distributed across networks like Ton, Avalanche, Aptos, Near, Celo, and Cosmos.
Tether’s total circulation has reached an all-time high of $149.4 billion, exhibiting an increase of 8.6% since the beginning of the year. This surge gives Tether a commanding market share of 61% in the stablecoin arena, as reported by CoinGecko, solidifying its position ahead of Circle, which holds a 25% market share with approximately $62 billion USDC in circulation.
The increase in stablecoin issuance is indicative of the growing demand and relevance of these digital assets, currently representing 8% of the total cryptocurrency market capitalization. According to a report released by the United States Treasury Department in late April, the stablecoin market is projected to reach $2 trillion by 2028, assuming that regulatory clarity is established.
Legislative Developments Surrounding Stablecoins
The landscape for stablecoins in the U.S. is poised for potential transformation with two significant pieces of legislation on the horizon. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act aims to establish clear definitions for “payment stablecoins” and set reserve requirements for issuers. U.S. Senate lawmakers are set to proceed with a vote on this bill prior to May 26, according to recent reports.
Additionally, the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act is advancing through Congress, focusing on the approval and supervision of federally qualified nonbank payment stablecoin issuers. Tether is also preparing to launch a U.S.-based stablecoin later this year, depending on the outcomes of these legislative efforts.
As the competition intensifies among stablecoin networks, and new regulations continue to evolve, all eyes will be on Tether and Tron to see if they can solidify their positions or reclaim their crown in the ever-growing digital currency space.
