Tether’s USDT Drives 40% of All Blockchain Fees, Is It Becoming the Global Dollar?

Tether’s stablecoin, USDT, seems to not just be leading in circulation, it’s also becoming a massive driver of blockchain activity. According to a recent post by Tether CEO Paolo Ardoino on X, USDT transactions now account for 40% of all blockchain fees across major networks.

The data, sourced from Chainalysis, reflects a 7-day moving average and covers nine blockchains, including Ethereum, Tron, Solana, TON, and Polygon.

Fee growth signals global usage shift

The chart shared by Ardoino indicates consistent fee growth for USDT transactions since 2022, with a noticeable acceleration in late 2024.

Much of this momentum appears to be tied to rising usage in emerging markets, where individuals and businesses increasingly rely on stablecoins to hedge against currency devaluation and inflation.

In regions like Turkey, Brazil, and several African nations, USDT is being used for everything from cross-border trade to savings, helping locals escape volatility in their native currencies.

“Hundreds of millions of people rely on USDT every day,” Ardoino said, highlighting how the token is becoming a go-to financial instrument outside traditional banking systems.

A recent report by Reuters had already noted that USDT crossed $100 billion in circulation by March 2024, emphasizing its role as the “most used digital dollar in the world.”

Low-fee blockchains fueling the trend

Much of USDT’s dominance in transaction fees comes down to the blockchains that support it. Tron, in particular, is leading in terms of cheap and fast USDT transfers.

Its low-fee environment and high throughput make it a favorite for retail and institutional users alike, handling over $80 billion in stablecoin volume with minimal gas fees.

Meanwhile, Ethereum still holds its ground due to its mature infrastructure and network reliability, though it often lags behind in affordability. Newer projects are exploring zero-gas-fee solutions, like the team at Stable, which could further change how blockchain fees are handled in the future.

While the numbers may shift, USDT’s growing transaction footprint suggests that stablecoins are playing an increasingly important role in both everyday payments and broader financial access.

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