Ethereum (ETH) Expands Stablecoin Market Share as TRON Declines

Ethereum continues to solidify its position as the dominant platform for stablecoins, despite rising blockchain environment competitiveness.

Recent statistics indicate that Ethereum continues to grow in terms of supply and usage, while TRON experiences significant declines in all key areas. The trend underscores the tendency for capital to flow to platforms that provide deeper liquidity, security, and trust.

Ethereum Gains Stablecoin Supply and User Activity

Since 2023, Ethereum has managed to expand its share of global stablecoin supply by 5.1%. This expansion has been achieved in spite of an increasing number of low-fee alternative blockchains that are vying for transactions. The data implies that Ethereum is still considered the best settlement layer for large-scale stablecoin supply and circulation.

Furthermore, active stablecoin addresses on ETH have also increased by around 3.7%. This suggests the continued usage of stablecoins on Ethereum, rather than simply parking funds.

Overall, the growth in supply and active addresses suggests the continued significance of Ethereum in stablecoin-based payments, DeFi, and institutional flows.

Also Read: Ethereum (ETH) Faces Brutal Plunge but Eyes 10% Rebound

TRON Loses Share Across Supply and Activity

In contrast, the share of stablecoins on the TRON network has decreased in double digits, as has the share of active addresses participating in it.

Although the TRON network had the advantage of low fees and high adoption rates in certain regions, recent data indicates a steady shift in capital and activity elsewhere.

The decline in TRON’s stable coin metrics is a reflection of a broader market trend that has been observed where usage is not enough to hold on to one’s capital. There is a need for reliability and infrastructure support. As more players enter this market, some of these weak projects may find it difficult to hold on to their early gains.

Low-Fee Chains Attract Users, Not Capital

Other blockchain networks, such as some low-fee networks, have also seen an increase in the number of active addresses. However, their increase in supply of stablecoins is not as large when compared to the ETH blockchain.

Capital concentration remains a strength for established chains with a security track record and high liquidity. ETH has the advantage of long-term infrastructure development, strong developer support, and connections with major financial platforms. These factors help explain why stablecoin issuers and large holders remain anchored to ETH.

What This Means for the Stablecoin Market

This data further confirms that ETH is the primary hub for stablecoin liquidity. Even with the rise of multi-chain activity, ETH seems to be gaining strength instead of losing it. This could further increase its strength over on-chain payments, DeFi liquidity, and tokenized assets.

At the same time, the decline in TRON’s share also indicates that a leading position in the field of stablecoins is not necessarily a given. Investors have become more discerning in their choices.

Also Read: Ethereum (ETH) Slides Below Key Support While $10K–$20K Targets Still Intact