Tron’s USDT Dominance: A Seismic Shift in the Stablecoin Landscape
Forget incremental changes – the distribution of Tether (USDT) is undergoing a rapid transformation. In just one quarter, from September to November 2025, Tron’s share of the total USDT supply surged by 14 percentage points, eclipsing 60%. This isn’t just a network preference; it’s a fundamental realignment of how the world’s most widely used stablecoin is actually used, and it signals a potential power shift within the broader crypto ecosystem.
The Data Tells a Clear Story
For years, Ethereum has been the dominant home for USDT. However, data from CryptoQuant vividly illustrates a growing exodus. Since 2020, a clear trend has emerged: a steady increase in USDT held on the Tron network (represented in red), while Ethereum’s share (blue) has gradually diminished. This shift accelerated dramatically towards the end of 2025, indicating a deliberate migration of liquidity.
As of late 2025, Tron boasts approximately 165.5 billion USDT in circulation, surpassing Ethereum’s 102.7 billion. While Ethereum still leads in overall issuance – holding 47.61% of the total supply according to DeFiLlama – Tron has become the go-to network for daily USDT transactions, commanding a 42.19% market share.
Why Tron? The Power of Low Fees
The driving force behind this migration is remarkably simple: cost. Transaction fees on Ethereum have historically been volatile and often prohibitively expensive, especially during periods of network congestion. In contrast, Tron has maintained remarkably stable and low fees, averaging around $0.66, as highlighted by Token Terminal data. This price stability is relatively new, coinciding with the recent surge in USDT moving to the network.
Ethereum, on the other hand, averages around $0.91, with frequent spikes far exceeding that amount. This cost differential is particularly crucial for high-volume traders, cross-border transfers, and liquidity providers in Asian OTC markets, where even small fees can significantly impact profitability. As CryptoOnChain specialists point out, “low transaction fees and high network speed” are the key attractors.
A Functional Reorganization: Ethereum and Tron Finding Their Niches
This isn’t necessarily a zero-sum game. The shift suggests a functional reorganization within the digital asset ecosystem. Ethereum is solidifying its position as the primary platform for USDT issuance and more complex decentralized finance (DeFi) services. Tron, meanwhile, is emerging as the operational backbone for fast, low-cost USDT movements. This division of labor attracts centralized exchanges and large liquidity providers seeking efficiency.
Looking ahead, analysts predict Tron could control over 70% of the USDT supply by early 2026. However, Ethereum’s inherent market depth and established infrastructure ensure its continued strategic importance. The network’s robust ecosystem and developer community provide a level of security and innovation that Tron currently lacks.
Implications for the Future of Stablecoins
The rise of Tron as a major USDT hub underscores a critical point: users prioritize affordability and speed. This trend isn’t limited to USDT; it’s likely to influence the distribution of other stablecoins as well. We may see increased competition among layer-1 blockchains to attract stablecoin liquidity, potentially leading to further fee compression and innovation in scaling solutions. The future of stablecoins isn’t just about which coin wins, but where those coins are actually used.
What does this mean for the average crypto user? Lower transaction fees translate to more efficient trading and remittances. However, it also highlights the importance of understanding the underlying infrastructure of the stablecoins you use. Diversification across multiple networks may become increasingly important to mitigate risk and optimize transaction costs.
Explore more insights on Layer-1 blockchain competition in our dedicated section.
