Ethereum has regained its status as the largest blockchain for Tether (USDT) deployment, overtaking Tron in terms of circulating supply. Data shows that USDT supply on Ethereum has increased by nearly $17 billion since May, reaching approximately $77 billion. This shift reflects a reversal of earlier trends observed in May, when Tron briefly held the upper hand with around 48 percent of total supply compared to Ethereum’s 42 percent. Throughout the year, both networks have competed closely, with overall supplies fluctuating between $75 billion and $80 billion. According to DeFiLlama, Tron’s current supply stands at $76.23 billion.
Retail users have often preferred Tron due to its lower transaction fees, while Ethereum has maintained a reputation for providing institutional-grade infrastructure despite higher costs. Ethereum’s strength continues to lie in its liquidity depth and its expansive decentralized finance (DeFi) ecosystem. Other blockchains capturing notable shares of the USDT market include Binance Smart Chain (BSC) with around 7.48 percent, Plasma (XPL) with $4.37 billion, and Solana, which holds a comparatively modest $2.1 billion.
Transaction activity highlights network use
Ethereum records an average of around 400,000 daily USDT transactions, while total daily transactions across the network recently exceeded 1.64 million. This underlines the blockchain’s role in facilitating payments and settlements across DeFi platforms. Tron, however, continues to lead in daily transaction counts, pointing to its ongoing popularity among smaller traders seeking cost efficiency.
Institutional adoption has played a decisive role in Ethereum’s resurgence. Companies such as PayPal have integrated stablecoins like PYUSD into Ethereum, with the token supply already surpassing $1.75 billion. The scale of Tether transactions on Ethereum has a significant impact on cross-chain bridge activity, liquidity provision, and exchange integration. Analysts suggest that Ethereum’s ability to attract institutional stablecoin flows strengthens its position as a primary settlement layer for blockchain-based financial services, particularly as traditional finance increasingly adopts digital payment infrastructure.
📈🔝 @Tether_to's USDT on @ethereum is back as the biggest stablecoin deployment by supply.
The supply of USDT on Ethereum has increased by ~$17 billion since May. pic.twitter.com/1wS2RZ1FA3
— Token Terminal @ TOKEN2049 🇸🇬 (@tokenterminal) September 26, 2025
Tether and Circle dominate the stablecoin landscape
Tether continues to lead the global stablecoin market with a capitalization of $174 billion, while Circle’s USDC remains in second place with $74 billion. Both issuers dominate the space but pursue different strategies. Tether, launched in 2014 originally under the name RealCoin, quickly established itself as the preferred option for transferring value across cryptocurrencies thanks to its speed and low costs. Despite facing regulatory penalties and scrutiny over its reserves, Tether has grown to operate on more than 90 networks worldwide.
Circle’s USDC, introduced in 2018, has adopted a contrasting model focused on compliance and transparency. The company issues monthly reserve attestations and has fostered strong partnerships with U.S. financial institutions. Circle went public in June through a New York Stock Exchange listing, raising more than $1 billion in its IPO. The firm positions USDC as a regulated alternative to Tether, targeting users and institutions that prioritize transparency.
Regulation reshapes the stablecoin market
The competitive landscape has been influenced by recent U.S. regulation. The GENIUS Act, signed into law by President Trump in July, introduced a standardized framework for stablecoins. It mandates monthly public reserve disclosures, third-party attestations, and strict limitations on asset composition. While Circle was already compliant with many of these requirements, Tether is preparing to launch a new U.S.-compliant stablecoin, USAT, while continuing to issue USDT for international markets.
Financially, Tether has maintained strong profitability, with quarterly earnings boosted by significant holdings of U.S. Treasuries. Since July, the company has invested more than $24 billion in short-term Treasury bills, making it one of the largest holders of U.S. debt. Circle’s USDC has faced slower growth, partly due to its revenue-sharing model with partners, but it continues to attract institutional trust through its regulatory alignment and transparency commitments.
