The battle for dominance in stablecoin supply is heating up as Tron, the high-speed blockchain network founded by Justin Sun, is on track to surpass Ethereum in total USDT (Tether) supply following a significant $1 billion mint.
On-chain data shows that Tether recently minted $1 billion worth of USDT on the Tron blockchain. While this amount has not yet been distributed to users, it represents an inventory replenishment intended to meet future issuance demands. According to Paolo Ardoino, CTO of Tether, the mint is an “authorized but not issued” transaction, meaning it doesn’t immediately enter circulation but is available for rapid deployment when required by market demand.
Tron Closing the Gap on Ethereum
As of mid-May 2025, Ethereum still hosts the largest supply of circulating USDT, but Tron is now extremely close behind. Tron already facilitates over 50% of all USDT transactions, thanks to its low fees and fast confirmation times, which make it especially attractive for users in developing markets and centralized exchanges.
With this new mint, Tron’s total authorized supply of USDT stands just shy of Ethereum’s. Analysts suggest that if user demand continues on current trends, Tron could officially surpass Ethereum as the leading blockchain for USDT supply within weeks.
Implications for the Crypto Ecosystem
This development is significant for several reasons:
- User Preference: Many users and platforms now prefer Tron-based USDT due to near-zero transaction fees compared to Ethereum’s higher gas costs.
- Network Utility: Increased stablecoin activity boosts a blockchain’s utility, providing revenue to validators and driving demand for native tokens like TRX.
- Tether’s Strategy: Tether’s heavy involvement with Tron highlights its commitment to multi-chain support and its confidence in Tron as a reliable settlement layer.
Market Reactions and Future Outlook
Crypto market participants are watching closely. If Tron does become the largest USDT network by supply, it could shift liquidity patterns, exchange integrations, and even impact decentralized finance (DeFi) projects that rely on stablecoins for yield farming and collateral.
This moment marks another milestone in the ongoing competition between blockchain platforms to host the world’s most-used stablecoin. With over $1 billion freshly minted and ready for deployment, Tron is poised to redefine stablecoin leadership in the months ahead.