The battle for dominance in the stablecoin market is heating up as the Tron network makes a strong push to overtake Ethereum in Tether circulation. Tether, the largest stablecoin issuer in the world, recently minted another $1 billion USDT on the Tron network on May 5, bringing the total USDT on Tron to $71.4 billion. This is just $1.4 billion shy of the $72.8 billion USDT circulating on Ethereum.

Tron had previously held the lead in USDT circulation over Ethereum between July 2022 and November 2024. However, Ethereum surged ahead after a massive $18 billion mint. Despite this setback, Tron is now inching closer to reclaiming the top spot, showcasing the fierce competition between the two networks.

In addition to Ethereum and Tron, the third-largest network for USDT is Solana, with $1.9 billion circulating. Other networks like Ton, Avalanche, Aptos, Near, Celo, and Cosmos also hold smaller amounts of USDT.

Tether's total circulation has hit a record high of $149.4 billion USDT, marking an 8.6% increase since the beginning of the year. This growth has solidified Tether's position as the dominant player in the stablecoin market, commanding a 61% market share, according to CoinGecko. In comparison, Tether's closest competitor, Circle, holds a 25% market share with nearly $62 billion USDC in circulation.

The surge in stablecoin issuance over the past six months has caught the attention of regulators. The United States Treasury Department predicts that the stablecoin market could reach $2 trillion by 2028 if regulatory clarity is achieved. To this end, two key pieces of legislation, the GENIUS Act and the STABLE Act, are being considered to provide a regulatory framework for stablecoins in the US.

The GENIUS Act aims to establish clear definitions for "payment stablecoins" and set reserve rules for stablecoin issuers. Lawmakers in the US Senate are expected to vote on the GENIUS stablecoin bill before May 26. Concurrently, the STABLE Act focuses on the approval and supervision of "federally qualified nonbank payment stablecoin issuers" and is making its way through Congress.

Tether is also planning to launch a US-based stablecoin later this year, with the timing dependent on the passage of regulatory legislation.

Source: https://cointelegraph.com/news/fresh-1-billon-tether-mints-tron-closing-gap-with-ethereum?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound