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Tron extends USDT lead over Ethereum as TRX price decouples from network boom

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Crypto VC Funding Reaches $244M as Mesh Leads

Tron tightens its USDT lead over Ethereum as network activity and BTC reserve plans climb, yet TRX price lags, retracing into a multi‑month consolidation range.

The Tron network has surpassed Ethereum in stablecoin supply, marking a shift in the competitive landscape between the two blockchain platforms that have competed for USDT dominance in recent years.

USDT stablecoin supply on Tron has risen significantly, giving it a larger share of the USDT supply than Ethereum, according to data from DeFiLlama.

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The increased USDT liquidity on Tron reflects the network’s faster and cheaper transaction capabilities compared to competing platforms. The growth corresponds with key network performance metrics, according to blockchain analytics data.

Tron on the radar

Address activity on the Tron network has surged alongside the rise in USDT supply. Active addresses maintained an upward trend over recent years and accelerated in recent weeks, with weekly active addresses rising sharply during this period, according to DeFiLlama data.

Transaction activity has followed a similar pattern. The Tron network recently recorded its highest weekly transaction volume, while the network’s stablecoin count reached a new historic high during the same week. Industry analysts have attributed the robust network growth to stablecoin transaction activity.

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Tron has been accumulating Bitcoin reserves and may execute another large purchase, according to public statements. Binance recently announced plans to convert part of its Secure Asset Fund for Users (SAFU) into Bitcoin. Tron founder Justin Sun has indicated plans for a similar move, though the exact amount of Bitcoin currently held by Tron remains undisclosed.

Despite positive network activity and Bitcoin acquisition plans, Tron’s native cryptocurrency TRX has not experienced corresponding price gains. TRX began January with an upward price movement but has since retraced most gains, experiencing a decline over recent weeks.

The TRX token was not in oversold territory despite the price drop, according to technical indicators. The retracement brought the token back to the consolidation zone where it traded between November and December of the previous year. The TRX price movement has shown limited correlation with Tron network activity, with the cryptocurrency’s performance appearing to track broader market conditions rather than network-specific demand.

Long-term price charts indicate a natural retracement following a parabolic price movement from November 2022 to August 2025, according to market data.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class