In this issue of Coin Metrics’ State of the Network, we examine Tether’s market position as it balances a dominant present with an increasingly competitive future. We look at how USDT’s market share has evolved, how its activity differs across blockchains today, and how emerging rails could shape its role in the next phase of stablecoin growth.
Key Takeaways:
- Tether remains the global leader in stablecoins, anchoring access to dollars in emerging markets and driving demand for U.S. Treasuries through its reserves.
- USDT’s dominance is declining as new regulation and competitive dynamics reshape the stablecoin market with differentiation across compliance and yield-distribution.
- Ethereum and Tron’s roles in USDT activity are evolving, with Tron maintaining leadership in high-frequency, low-cost payments, while Ethereum’s falling fees and liquidity fuel broader retail and settlement adoption.
- Emerging rails present a new growth opportunity, with USDT0 and stablecoin-focused networks like Plasma extending Tether’s distribution across networks and use-cases like payments.
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