Ethereum and TRON Dominate Stablecoin Market with $144B in Value and 84% Market Share
- By: Liam Harper
- Ethereum and TRON hold a combined 84% market share in the stablecoin space, according to CoinGecko.
- The two blockchain networks collectively have $144.4 billion in stablecoins as of September 2024.
- Ethereum leads with $84.6 billion in stablecoin supply, followed by TRON with $59.8 billion.
The stablecoin market continues to be led by Ethereum and TRON, which together hold nearly 84% of the market, according to data from CoinGecko. As of September, the total value of stablecoins across these two networks reached $144.4 billion.
Are you looking for the best trading platform? Sign-up to the best trading platform for you for FREE. Takes 2 mins.
Ethereum Leads with $84.6B in Stablecoins
Ethereum remains the largest player in the stablecoin ecosystem, with $84.6 billion in stablecoin supply, making up 49.1% of the market. Despite a $17.2 billion increase in supply in 2024, Ethereum’s market share has slightly declined due to factors such as the collapse of Terra’s UST, the ongoing bear market, and the growing popularity of layer 2 solutions.
TRON’s Strong Demand for Tether (USDT)
TRON, with $59.8 billion in stablecoins, accounts for 34.8% of the market. Its dominance is driven by the high demand for Tether (USDT), which makes up 98.3% of the stablecoins on the TRON network. While TRON saw a 21.6% increase in its stablecoin supply in 2024, its market share has dropped from 37.9% earlier in the year.
The combined influence of Ethereum and TRON highlights the central role these blockchains play in the stablecoin ecosystem, where they are used for trading, savings, and yield generation. However, they are facing increasing competition from newer networks like Coinbase’s Base.
BNB Chain’s Stablecoin Share Declines to 2.9%
BNB Chain holds a distant third place with a 2.9% market share in stablecoins, significantly impacted by regulatory scrutiny around Binance USD (BUSD). Since May 2022, the chain has experienced a 61% drop in its stablecoin supply, underscoring the broader challenges posed by regulatory issues in the cryptocurrency landscape.
In contrast, newer networks are gaining traction. For example, Coinbase’s Base blockchain grew its stablecoin supply by a staggering 1,941.5% in 2024, marking a broader shift toward diversification in the stablecoin market as alternative networks continue to emerge.
Stablecoins Expected to Reach $5.28T in Transaction Volume
The importance of stablecoins in global finance is increasing rapidly. In 2023, stablecoins facilitated $3.7 trillion in transactions, and this figure is projected to grow to $5.28 trillion by the end of 2024.
The rise of stablecoins has been driven by their use in emerging markets beyond cryptocurrency exchanges. As reported by Castle Island Ventures and Brevan Howard Digital, stablecoins are being adopted for savings, currency conversion, and yield generation in countries like Nigeria, Indonesia, Turkey, Brazil, and India.
In these regions, stablecoins are increasingly seen as a hedge against inflation and volatile local currencies, offering financial stability where traditional banking systems face challenges.
Emerging Markets Lead Non-Crypto Stablecoin Use
A survey of 2,540 crypto users across five emerging markets revealed that, while stablecoins are primarily used for trading, non-crypto use cases are gaining ground. Stablecoins are being employed for savings in volatile economies and for cross-border remittances, further broadening their role in global finance.
This trend reflects the growing potential of stablecoins to transform financial systems, particularly in regions with unstable fiat currencies. The combination of blockchain technology and financial stability makes stablecoins an attractive alternative to fiat currencies.
A More Diversified Stablecoin Market
While Ethereum and TRON dominate the stablecoin space, the rise of networks like Coinbase’s Base suggests a shift toward a more diversified market. The rapid growth of Base highlights the potential for new blockchains to capture significant market share.
As the stablecoin ecosystem continues to expand, the market could become more fragmented and competitive, with emerging networks challenging the dominance of Ethereum and TRON. This diversification is likely to accelerate as more blockchains seek to capitalize on the growing demand for stablecoins in both crypto and non-crypto financial applications.
S&P 500 Hits Record High; Dow Gains as Longboard Pharmaceuticals Surges 51% and Tech Stocks Rise S&P 500 Reaches Record
S&P 500, Dow Notch Record Closing Highs as Crude Slumps Major Indexes Set Record Highs: The S&P 500 and Dow
Should You Buy Plug Power Stock While It’s Trading Below $4? A Closer Look at the Hydrogen Pioneer’s Future Plug
MicroStrategy Stock Rises 550% in 2024: Should You Invest? MicroStrategy (NASDAQ: MSTR) has been one of the top-performing stocks in
One of Tesla’s Biggest Bulls ‘Disappointed’ After Robotaxi Event Tesla’s much-anticipated Robotaxi event left one of its most ardent supporters