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