Will USDT and USDC Hinder the Future of the Ethereum Merge?
The Ethereum Merge is one of the most anticipated events in the crypto world, promising a more sustainable and scalable future for the network. But could stablecoins like Tether (USDT) and USD Coin (USDC) actually pose a threat to its success? Ethereum cofounder Vitalik Buterin thinks they could be a big factor.
Centralized Stablecoins and Contentious Hard Forks
According to Buterin, centralized stablecoins such as Tether (USDT) and Circle USD (USDC) could become “an important determinant of contentious hard forks in the future.” This is a significant concern, raising questions about the long-term decentralization of Ethereum.
USDT and USDC Officially Support the Merge
Hot on the heels of an official announcement from USD Coin (USDC) issuer Circle Pay, stablecoin giant Tether has now also officially confirmed its support behind the Merge. This widespread support indicates a general consensus within the crypto community regarding the necessity of the upgrade. So, will stablecoins hinder the future of Ethereum’s Merge? While they support the Merge, the potential for control remains a valid point of discussion.
Vitalik Buterin on the Future of Ethereum
One of the most anticipated talks was the Ethereum founder\'s speech at the BUIDL ASIA 2025 conference kickstarted in Seoul on 4 August and was attended by a host of global blockchain market leaders including, and he went on to talk about the future of Ethereum\'s base layer, merger upgrades, L1-L2 coexistence, and more. His comments on the influence of stablecoins were particularly noteworthy.
The Stablecoin Landscape: USDT vs. USDC
Despite USDC’s growth, Tether still holds a commanding market cap of $137.3 billion, compared to USDC’s $43.7 billion. The stablecoin market remains heavily influenced by both. The circulating supply of USDC has surged by 80% from its lows in 2025, and that\'s due to a mix of increased on-chain activity and people spreading their USDC across various platforms. Market sentiment leans cautiously bullish due to USDT’s $120B U.S. Treasury reserves and 75.7B USDT minted on Tron (surpassing Ethereum), driven by lower fees. Source: Yahoo Finance
What the Merge Means for Miners
The Merge signifies a shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS), fundamentally changing the role of miners in the Ethereum ecosystem. While the Merge aims to improve efficiency and sustainability, the concentration of power within stablecoin issuers is something to watch.