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Tron Flips Ethereum: New King of USDT Supply

Tron surpassed Ethereum for circulating USDT supply for the first time with around $73.8 billion USDT versus Ethereum's $71.9 billion up to May 2025. It is a new development being introduced by Tron due to its minimal fees, quick settlement, and continuous issuance of USDT since mid-2023, with more than $14 billion new USDT being issued on Tron alone within the first half of 2025. The network's daily transaction volume has increased in speed, while its DEX volume has increased in a factor of exponential growth, indicating strong utilization of the network and DeFi activity.

The exorbitant fees and congestion in the Ethereum network have forced clients to alternative cheaper options such as Tron or Layer-2 solutions, with USDT supply growth on the Ethereum network decreasing. Ethereum reigns supreme in DeFi but is no longer the go-to option for cheap, high-volume stablecoin transactions on its mainnet. Tron's convenience and affordability have also seen it gain a lot of popularity in emerging economies such as Latin America and Southeast Asia.

This flippening is a sign of a greater migration of stablecoin infrastructure to cost- and speed-oriented networks, potentially to influence development and user growth patterns in the future. The native Tron token, TRX, has gained value as a response to this news due to heightened investor confidence and usage on the network

 

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