1st October 2024 – (New York) Blockchain networks Ethereum and TRON are maintaining their stronghold over the stablecoin market, jointly accounting for 83.9% of the sector’s total value, which stands at $144.4 billion, according to the latest data from CoinGecko.
In a detailed market analysis, Ethereum has emerged as the leader, holding $84.6 billion or 49.1% of all stablecoins in circulation. TRON, not far behind, controls $59.8 billion, representing 34.8% of the market. This dominance is significant in a financial landscape increasingly reliant on stablecoins for a variety of transactional purposes.
The report from CoinGecko elaborates that despite Ethereum’s stablecoin supply growing by $17.2 billion in 2024, its market share has seen a marginal decline. This shift is partially attributed to the fallout from Terra’s stablecoin UST collapse, the broader crypto bear market, and the rise of layer 2 solutions which diversify the blockchain ecosystem.
TRON’s significant share is largely supported by its handling of Tether, which constitutes 98.3% of the stablecoins on its network. Despite an increase in supply by 21.6%, TRON’s market share experienced a slight decrease from 37.9% earlier in the year.
The landscape for stablecoins is rapidly evolving with the BNB Chain, formerly known as BNB Smart Chain, seeing its market share decrease to 2.9% amid regulatory challenges affecting its Binance USD (BUSD) offerings, which saw a 61% reduction in supply since May 2022. Conversely, newer platforms like Coinbase’s Base are making significant inroads, with a 1,941.5% increase in stablecoin supply noted in 2024, pointing to a diversifying market.
Stablecoins have settled an impressive $3.7 trillion in transactions in 2023, with projections suggesting this could rise to $5.28 trillion by the end of 2024. Beyond their traditional role in exchange settlements, stablecoins are increasingly used in emerging markets for functions such as savings, currency conversion, and yield generation, according to insights from Castle Island Ventures and Brevan Howard Digital.
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