Ethereum, TRON lead stablecoin market with $144B combined value and 84% market share

The stablecoin market continues to be dominated by Ethereum and TRON, with both blockchain networks holding a combined market share of nearly 84%, according to estimates from crypto price aggregator CoinGecko.

As of September, the total value of stablecoins on these networks reached $144.4 billion.

Ethereum leads with $84.6 billion, or 49.1% of the total stablecoin supply, while TRON follows closely behind with $59.8 billion, representing 34.8% of the market.

Despite Ethereum’s stablecoin supply increasing by $17.2 billion in 2024, its market share has slightly declined due to various factors.

These include the collapse of Terra’s UST, the ongoing bear market, and the increasing popularity of layer 2 solutions.

Source: CoinGecko

TRON’s strong demand for Tether

TRON’s dominance is largely driven by the demand for Tether (USDT), which accounts for 98.3% of the stablecoins on its network.

TRON saw a 21.6% increase in its stablecoin supply throughout 2024. Its overall market share has dropped from 37.9% earlier in the year.

Ethereum and TRON’s combined influence shows how the two blockchains have become central to the stablecoin ecosystem, as they are used for a variety of financial applications, from trading to savings and yield generation.

Yet, the dominance of these networks is being challenged by emerging blockchain networks like Coinbase’s Base.

BNB Chain’s stablecoin share drops to 2.9%

BNB Chain, previously known as BNB Smart Chain, holds a distant third place in the stablecoin market, with a 2.9% share.

Regulatory issues around Binance USD (BUSD) have contributed to a significant 61% reduction in the chain’s stablecoin supply since May 2022.

This decrease in BNB Chain’s stablecoin supply highlights the impact of regulatory scrutiny on the broader cryptocurrency landscape.

The fall of BNB Chain stands in contrast to the rise of newer blockchain networks.

For example, Coinbase’s Base blockchain grew its stablecoin supply by an astonishing 1,941.5% in 2024. This signals a broader shift towards diversification within the stablecoin market as more blockchain networks enter the space and offer alternatives.

Source: Crypto.news/ Castle Island Ventures

Stablecoins to reach $5.28T in transaction volume

Stablecoins have been playing an increasingly significant role in global finance. In 2023, stablecoins settled $3.7 trillion worth of transactions, and this figure is projected to grow to $5.28 trillion by the end of 2024.

The growing importance of stablecoins has been driven by their use beyond cryptocurrency exchanges.

As data from Castle Island Ventures and Brevan Howard Digital revealed, stablecoins are being used more frequently in emerging markets, particularly for savings, currency conversion, and yield generation.

These trends are especially prevalent in regions such as Nigeria, Indonesia, Turkey, Brazil, and India.

In these countries, stablecoins are being adopted for purposes outside of trading cryptocurrencies or non-fungible tokens (NFTs).

As traditional financial systems face challenges, stablecoins are providing an alternative solution, offering stability in volatile currency environments.

Emerging markets lead non-crypto stablecoin use cases

Researchers surveyed over 2,540 crypto users across five emerging markets, finding that while trading remains the primary use of stablecoins, non-crypto use cases are gaining traction.

Stablecoins are increasingly being used for savings in volatile economies and cross-border remittances, offering users a hedge against inflation and the volatility of local currencies.

This expanding role of stablecoins beyond traditional cryptocurrency trading reflects their broader potential in reshaping global finance, particularly in regions with less stable fiat currencies.

The combination of financial stability and blockchain technology makes stablecoins an attractive alternative to fiat currencies, especially in countries facing economic instability.

As new players enter the stablecoin space, the market is becoming more diversified.

With Coinbase’s Base and other blockchains growing in prominence, it is clear that the stablecoin market is not confined to a few dominant networks.

The rapid growth of Base, in particular, indicates the potential for new blockchains to capture significant market share.

While Ethereum and TRON currently dominate, the rise of other networks could lead to a more fragmented and competitive landscape.

This diversification is likely to accelerate as more blockchain networks seek to capitalize on the growing demand for stablecoins in both crypto and non-crypto financial applications.

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