Ethereum and TRON, two prominent blockchain networks, have solidified their dominance in the stablecoin market, collectively holding a staggering 84% share of all stablecoins, according to data gathered by CoinGecko. With a combined value of $144.4 billion, Ethereum and TRON have established themselves as the frontrunners in this rapidly evolving sector of the cryptocurrency industry.
As of September, Ethereum leads the pack with $84.6 billion, representing 49.1% of the total stablecoin supply, while TRON closely follows with $59.8 billion, accounting for 34.8% of the market. Despite Ethereum’s stablecoin supply increasing by $17.2 billion in 2024, its market share experienced a slight decline due to various factors such as the collapse of Terra’s stablecoin UST, the onset of a bear market, and the rise of layer 2 solutions during that period.
TRON’s dominance can be attributed to the strong demand for Tether (USDT), which makes up 98.3% of the stablecoins on the network. However, TRON’s market share saw a decrease from 37.9% earlier in the year despite a 21.6% increase in supply. BNB Chain (formerly BNB Smart Chain) holds the third position in the stablecoin market but has seen its share drop to 2.9% due to regulatory challenges surrounding Binance USD (BUSD), which led to a significant reduction in the chain’s stablecoin supply since May 2022.
On the other hand, emerging blockchains like Coinbase’s Base are gaining traction, with a remarkable 1,941.5% growth in stablecoin supply in 2024, indicating a diversification in the stablecoin landscape. This trend highlights the evolving nature of the stablecoin market and the increasing importance of these digital assets in reshaping the global finance landscape.
Stablecoins have become integral to global finance, settling $3.7 trillion in transactions in 2023 and projected to reach $5.28 trillion by the end of 2024. Beyond exchange settlement, stablecoins are being utilized for various purposes in emerging markets, including savings, currency conversion, and yield generation. A survey conducted across Nigeria, Indonesia, Turkey, Brazil, and India revealed that stablecoins are not only popular for trading cryptocurrencies or non-fungible tokens but also for non-crypto related activities.
Overall, the dominance of Ethereum and TRON in the stablecoin market underscores the growing significance of these blockchain networks in the cryptocurrency ecosystem. As stablecoins continue to play a pivotal role in global finance, their impact on traditional financial systems and emerging markets is expected to expand further in the coming years.