Ethereum vs. TRON: ETH Still Leads in Stablecoin Market Share

• Ethereum holds 49.1% of the stablecoin market, despite recent volatility and market shifts.  
• TRON and Ethereum dominate the stablecoin market with a combined value of $144.4 billion.  
• ETH price dropped below $2,500, yet long-term outlook remains optimistic among analysts.

Ethereum remained the top platform for stablecoins even with the fluctuations in the market. 

According to CoinGecko , Ethereum holds about $84.6 billion in stablecoins, representing 49.1% of the total stablecoin supply as of September. The smart contract platform plays a crucial role in DeFi, holding nearly half of all stablecoins in the market.

Source: CoinGecko

TRON also has a strong presence, holding 83.9% of the $144.4 billion stablecoin market. TRON holds $59.8 billion, giving it a 34.8% share. However, Ethereum’s market share has slightly decreased.

This decline may be due to the increasing usage of layer 2 solutions and the recent failure of Terra’s UST stablecoin. In fact, Ethereum’s stablecoin supply grew by $17.2 billion this year, but its market share still decreased.

ETH Price Faces Pressure, But Long-Term Outlook Stays Positive

The price of Ethereum’s native token, ETH, recently fell below $2,500. It dropped by nearly 4% in 24 hours, reaching $2,480. This decline reflects broader market uncertainty, partly driven by geopolitical tensions in the Middle East.

Read also: Top 5 Layer-1 Blockchains: Beyond Ethereum in 2024

As ETH prices dropped, liquidations jumped, with $87 million in ETH positions liquidated within a day. Most of these positions were long, showing overextended bullish sentiment.

Source: Tradingview

Technical indicators suggest the market may continue to experience bearish pressure. ETH has fallen below crucial moving averages – the 50 SMA, 100 SMA, and the 200 SMA. Analysts are now watching for the next support level of $2,395.

Despite the short-term volatility, many still believe in future ETH growth. Historically, Ethereum has seen a strong return in the fourth quarter, averaging 20.8%.

Whale activity also indicates growing confidence. Addresses holding between 100,000 and 1 million ETH have accumulated more since August, now controlling 44.17% of the total supply. This accumulation suggests that large investors remain bullish.

Meanwhile, Ethereum-based ETFs have lagged behind Bitcoin ETFs in terms of performance. BlackRock executives say their Ethereum ETF has underperformed expectations. They attribute this to a more complex investment narrative compared to Bitcoin’s “digital gold” positioning. Despite this, Ethereum continues to dominate the stablecoin market.