Tether, the issuer of the world’s most widely used stablecoin USDT, is approaching $1.5 billion in quarterly revenue, signaling its position as one of the most profitable players in the crypto ecosystem. This performance comes as Ethereum (ETH) revenue remains subdued, with network fees bringing in less than $200 million during the same period, according to blockchain analytics firms.
Tether’s revenue is largely driven by interest earned on U.S. Treasury holdings, which back the stablecoin’s reserves. The company has benefited from sustained high interest rates and continued global demand for dollar-pegged digital assets.
“The demand for USDT has never been higher in emerging markets and offshore exchanges,” one analyst noted. “It’s now a core part of cross-border transactions and crypto liquidity.”
In contrast, Ethereum’s fee revenue has dipped sharply, due to reduced network activity and cooling enthusiasm in DeFi and NFTs. Despite maintaining its position as the leading smart contract platform, Ethereum has yet to see a meaningful rebound in user demand or fee-generating activity.
Data from on-chain metrics show:
- Tether revenue: $1.48 billion
- Ethereum revenue (Q1): $192 million
This growing disparity highlights a broader trend in crypto markets: stablecoins are increasingly becoming the dominant business model, while native blockchain tokens face pressure from macroeconomic headwinds and regulatory scrutiny.
Ethereum’s upcoming upgrades are expected to improve scalability and reduce transaction costs, which may eventually help reverse the slowdown in usage. But for now, USDT continues to outpace ETH in real-world utility and profitability.
