Stablecoin dominance is basically the first step to DeFi dominance. The logic is simple – Networks with more stablecoins locked on-chain have deeper liquidity, which enables smoother trading, lending, and borrowing.
Notably, with Tether [USDT] alone accounting for 60% of the stablecoin market, it gives the networks that host it a relatively stronger foundation. Looking at L1s, it’s clear that they are strategizing around this advantage.
According to DeFiLlama, TRON [TRX] has officially overtaken Ethereum [ETH] in USDT dominance, capturing 44.97% versus ETH’s 44.56%. This has reinforced the idea that stablecoins are becoming a critical battleground.
Source: DeFiLlama
Zooming out, TRON’s growing USDT share is even more obvious. Over the past month, TRX’s USDT supply jumped by 3.62%, hitting 83.49 billion. All while Ethereum saw a 5.6% drop over the same period, falling to 82.74 billion.
What makes this interesting is the timing. TRON’s USDT growth is happening in a risk-off market, where major assets are correcting. Ethereum, for example, slid by 15.36% over the month to multi-month lows.
By comparison, TRX has limited its losses to 2.6%, raising the question – Is TRON positioning itself as a more resilient DeFi hub, one that can weather volatility better than ETH thanks to its growing stablecoin base?
TRON emerges as a DeFi rail amid the stablecoin race
Liquidity is what really drives DeFi dominance.
Analysts are calling it a ‘stablecoin war’ between L1s. TRON is making moves, grabbing more USDT dominance, but Ethereum’s Total Value Locked (TVL) of $58 billion still dwarfs TRON’s $4 billion.
In other words, Ethereum remains the go-to hub for overall “liquidity.” That said, locked TRX just hit a record 46.2 billion, or 48% of the total supply – A sign that TRON is quietly building a strong and resilient DeFi base.
Source: CryptoQuant
By comparison, Ethereum’s locked supply sits at just around 30%.
From a technical perspective, TRON’s higher staking rate cuts down circulating supply pressure, helping it hold up better in volatile markets. At the same time, more stablecoins are flowing through its ecosystem.
Together, high staking and USDT liquidity create a flywheel – Staked tokens cap volatility, while stablecoin dominance pulls in more users. As a result, TRON is quietly becoming the DeFi rail, running through Justin Sun now.
Final Thoughts
- TRON captured 44.97% of USDT vs. Ethereum’s 44.56%, highlighting the growing importance of stablecoins in DeFi.
- With 48% of TRX locked and rising USDT flows, TRON is building a DeFi flywheel that reduces volatility and attracts users.
Source: https://ambcrypto.com/tron-takes-the-lead-what-ethereums-slip-in-usdt-dominance-means-for-defi/
