Ethereum Blockchain Retains Dominance in the Stablecoin Market

Ethereum continues to dominate the stablecoin sector despite recent market volatility.

As of September, CoinGecko reports that the platform manages approximately $84.6 billion in stablecoins, which constitutes 49.1% of the overall stablecoin supply. This positions Ethereum as a central player in the DeFi space, holding nearly half of all stablecoins available.

TRON also commands a significant share of the stablecoin market, maintaining an 83.9% control of the total $144.4 billion. With $59.8 billion in stablecoins, TRON accounts for 34.8% of the market.

However, Ethereum’s share has seen a slight decline, likely influenced by the rise of layer 2 solutions and the collapse of Terra’s UST stablecoin. Notably, while Ethereum’s stablecoin supply increased by $17.2 billion this year, its overall market share has diminished.

ETH’s price has recently encountered downward pressure, falling below $2,500 and dropping nearly 4% within 24 hours to settle at $2,480. This decline is indicative of broader market uncertainty, partially fueled by escalating geopolitical tensions in the Middle East.

Additionally, the drop in ETH prices has led to a spike in liquidations, with $87 million in ETH positions liquidated in just one day. Most of these liquidated positions were long trades, highlighting an overextended bullish sentiment among investors.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.