In a significant move that has the cryptocurrency community buzzing, Tether, the dominant stablecoin issuer, minted an additional $1 billion USDT on the Tron network on May 5. This mint, confirmed by Arkham Intelligence, nudges Tron closer to overtaking Ethereum in terms of Tether circulation, a position it held from July 2022 to November 2024. The latest figures from the Tether Transparency report reveal that Tron’s total USDT now stands at $71.4 billion, just shy of Ethereum’s $72.8 billion.
Tron’s Race to the Top
Tron, the blockchain platform often hailed for its speed and efficiency, has been steadily gaining ground on Ethereum. This isn’t the first time Tron has challenged Ethereum for the Tether crown. Between mid-2022 and late 2024, Tron consistently led the charge until an $18 billion mint on Ethereum shifted the scales. Yet, here we are—Tron’s back in the game, and with only $1.4 billion separating it from Ethereum, the possibility of reclaiming the top spot seems tantalizingly close.
Industry experts are watching closely. “Tron’s lower transaction fees and faster processing times make it an attractive choice for stablecoin operations,” notes Emily Carter, a blockchain analyst at CryptoQuant. “The recent minting surge reflects a strategic push to capitalize on these advantages.” For more insights into Tether’s strategic moves, see our coverage of Tether’s U.S.-focused stablecoin plans.
The Broader Stablecoin Landscape
As Tether’s circulation hits a record high of $149.4 billion USDT—a leap of 8.6% this year alone—the stablecoin’s dominance is undeniable, commanding a 61% share of the market. In stark contrast, Circle’s USDC holds a 25% market share with nearly $62 billion in circulation, as reported by CoinGecko. In this dynamic arena, stablecoins account for 8% of the entire crypto market capitalization, signaling their growing importance.
The expanding stablecoin market isn’t just a matter of market share. The U.S. Treasury Department recently forecasted that the sector could mushroom to $2 trillion by 2028, provided that regulatory clarity is attained. Legislative efforts are already in motion, with two pivotal bills—the GENIUS Act and the STABLE Act—slated for votes in the U.S. Senate before the end of May. The GENIUS Act aims to establish definitions and reserve rules for stablecoins, while the STABLE Act focuses on the oversight of nonbank stablecoin issuers.
The Implications Ahead
The crypto world isn’t just eyeing Tron’s potential resurgence with interest; there’s a broader narrative at play. Tether’s plan to launch a U.S.-based stablecoin later this year hinges on these legislative developments. This regulatory backdrop could either pave the way for a more robust stablecoin ecosystem or introduce hurdles that reshape market dynamics. For a deeper dive into Tether’s broader ambitions, see our article on Tether’s acquisition of Adecoagro stake.
As we look ahead, questions linger. Will Tron wrest the top position from Ethereum once more? And how will impending regulations alter the stablecoin landscape? The answers may reshape the future of digital currencies. For now, all eyes remain on the unfolding legislative and market developments, with the potential for significant shifts on the horizon.
Source
This article is based on: Fresh $1B in Tether mints on Tron, closing gap again with Ethereum
Further Reading
Deepen your understanding with these related articles:
- Visa and Baanx Launch USDC Stablecoin Payment Cards
- Ripple Offered $4B-$5B for Stablecoin Issuer Circle: Bloomberg
- Mesh Adds Apple Pay to Let Shoppers Spend Crypto, Settle in Stablecoins
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
