Tether Issues $1B USDT on Tron Amid Shift from ETH
The Essentials at a Glance
Tether (USDT), the largest stablecoin by market capitalization, recently issued another billion USDT on the Tron blockchain. This move brings Tron closer to Ethereum in the rankings of networks with the highest USDT volume. Tether’s decision to increasingly rely on Tron could signal a shift in power within the stablecoin ecosystem. The main reasons: lower transaction fees and higher speed on Tron.
Tron Gains Ground: 1 Billion New USDT
On May 7, 2025, Tether minted another billion USDT on Tron. This action has reignited the debate over whether Ethereum is losing its leading role in the stablecoin space. Tron benefits from low transaction costs and high efficiency—two key factors in the use of stablecoins.
USDT Distribution: Tron Nearly on Par with Ethereum
Ethereum currently holds around 74.5 billion USDT. Tron is just slightly behind. Since early 2022, a clear trend has emerged: while Ethereum’s USDT holdings have stagnated or slightly declined, Tron’s share has been steadily increasing. With the new billion USDT on Tron, the network could soon take the lead.
Transaction Volume on Tron Reaches New Highs
According to data from TronScan, the daily number of transactions on Tron has risen from around 6 million to over 9 million—with peak values nearing 11 million. Since January 2025, this growth has accelerated. This indicates increasing usage and acceptance, particularly for USDT transfers.
Ethereum Losing Appeal Due to High Fees
One major drawback of Ethereum is its high gas fees. For stablecoin transactions, this means higher costs for users and issuers. As a result, Tether and other providers are increasingly turning to more affordable networks like Tron. Users are following this trend as they seek lower costs and faster processing.
What Does This Mean for Ethereum’s Future?
Ethereum is heavily investing in so-called Layer 2 solutions to improve scalability and efficiency. However, without fundamental improvements to the main blockchain, Ethereum may continue to lose market share. Tron currently offers the more attractive overall package for stablecoin transactions.
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Our Assessment
The recent USDT minting on Tron is more than just a technical event—it signals a clear market shift. Tron currently offers better conditions for stablecoin transfers: low fees, high speed, and a growing user base. While Ethereum remains a technological leader, it is losing ground in practical applications. Anyone looking to use stablecoins efficiently should keep an eye on Tron. Whether Ethereum can counter this trend depends on the successful implementation of planned improvements.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | 1795.5 |
| 24h % | 0.57 % |
| 7d % | 0.66 % |
| 30d % | 16.32 % |
| 60d % | -18.71 % |
| 1y % | -41.08 % |
| Market Cap | $216,761,420,320.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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