David Edwards
Ethereum and TRON continue to dominate the stablecoin market, collectively controlling nearly 84% of the total supply, valued at $144.4 billion as of September 2024, according to data from CoinGecko.
Ethereum and TRON Lead Stablecoin Market
Blockchain giants Ethereum and TRON hold the majority share of the stablecoin market, with Ethereum commanding $84.6 billion, representing 49.1% of the total supply, and TRON following with $59.8 billion, accounting for 34.8%. Together, they control an impressive 83.9% of the market, highlighting their strong influence in the growing stablecoin sector.
Despite Ethereum’s stablecoin supply increasing by $17.2 billion in 2024, its market share slightly declined. This drop is attributed to the collapse of Terra’s UST, the prolonged bear market, and the rise of Layer 2 solutions. TRON’s dominance, driven largely by Tether (USDT), which makes up 98.3% of its stablecoins, also saw a slight decrease, dropping from 37.9% to 34.8%, despite a 21.6% increase in supply.
BNB Chain and Emerging Blockchains
BNB Chain, previously ranked third in the stablecoin market, has seen its share shrink to 2.9%, largely due to regulatory challenges involving Binance USD (BUSD). This led to a 61% reduction in the chain’s stablecoin supply since May 2022. Meanwhile, newer blockchains like Coinbase’s Base have rapidly expanded their stablecoin presence, with Base’s supply surging by 1,941.5% in 2024, underscoring the diversifying nature of the stablecoin ecosystem.
Stablecoins’ Impact on Global Finance
Stablecoins are reshaping global finance, with their transaction volumes reaching $3.7 trillion in 2023 and expected to hit $5.28 trillion by the end of 2024. Research from Castle Island Ventures and Brevan Howard Digital shows a growing use of stablecoins in emerging markets like Nigeria, Indonesia, Turkey, Brazil, and India. Beyond crypto trading, stablecoins are being increasingly used for savings, currency conversion, and yield generation, signaling their expanding role in the financial landscape.
