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Cross-Chain Fragmentation Entropy

Last updated · daily at 15:40 UTC

How evenly is stablecoin supply distributed across blockchains?

As of September 12, 2026, stablecoin supply across 171 blockchains had a Shannon entropy of 2.30 bits, equivalent to 31% of its theoretical maximum. Ethereum accounted for 48.0% of total supply.

Shannon entropy measures how evenly stablecoin supply is distributed across blockchains: H = −Σ pi · log2(pi), where pi is chain i's share of total stablecoin supply. Higher entropy means supply is spread more evenly across many chains, a more fragmented settlement layer. Lower entropy means supply is concentrated on fewer chains.

Shannon Entropy (H)
2.30 bits (31% of max)
Max Possible Entropy
7.42 log2(171 chains)
Top Chain Share
48.0% Ethereum
Chains Above 1%
8 of total supply

Shannon Entropy Over Time

Daily cross-chain fragmentation entropy in bits. Rising entropy means stablecoin supply is spreading to more chains; falling entropy means consolidation onto fewer chains. The dashed line marks 50% of maximum possible entropy.

Series begins January 2018. Source: Stablecoin Beat, series cross-chain-entropy · 2026-09-12.

Top 5 Chains, Supply Share

Daily share of total stablecoin supply for the top 5 chains by current supply. Shows which chains are gaining or losing share over time.

Ordered by current supply; the ranking is carried back through history. Source: Stablecoin Beat, series chain-supply-share · 2026-09-12.

Top 10 Chains by Stablecoin Supply

Ranked by total stablecoin supply, all issuers combined. Current values; the table does not change with the charts above.

# Chain Supply (USD) Share Share of total
1 Ethereum $146.8B 48.0%
2 Tron $94.2B 30.8%
3 Solana $16.1B 5.3%
4 BSC $13.8B 4.5%
5 Hyperliquid L1 $6.9B 2.3%
6 Base $5.0B 1.6%
7 Arbitrum $3.8B 1.2%
8 Polygon $3.1B 1.0%
9 X Layer $1.7B 0.6%
10 Avalanche $1.4B 0.5%

How to Read the Entropy Measure

What the level tells us

Shannon entropy ranges from zero, when all stablecoin supply sits on a single blockchain, to log2(N), when supply is distributed equally across the N chains observed.

Because the theoretical maximum increases with the number of chains, the raw reading in bits is most useful when shown alongside its share of that maximum. The percentage provides a more consistent basis for comparison over time. A low reading indicates that settlement is concentrated on a relatively small number of networks; a reading closer to the maximum indicates that supply is distributed more evenly across many chains.

What a change in the level means

Entropy rises when supply shifts away from dominant chains towards smaller ones, and falls when liquidity becomes more concentrated on a narrower set of networks.

An increase can result from the growth of new blockchain ecosystems, greater activity on layer-two networks or issuers expanding native issuance across more settlement environments. A decline can instead reflect liquidity consolidating on networks where markets are already deepest.

Neither direction is inherently beneficial. A wider distribution reduces dependence on any single blockchain, but it can also fragment the liquidity that supports efficient trading, settlement and redemption.

Why there are no threshold bands

Unlike the Herfindahl-Hirschman Index, Shannon entropy has no recognized regulatory or competition-policy thresholds.

Competition authorities publish HHI ranges for assessing market concentration, but no equivalent framework exists for the distribution of stablecoin supply across blockchains. Entropy is therefore best interpreted relative to its own theoretical maximum and through the direction and magnitude of changes over time, rather than against arbitrary cut-offs.

Methodology

Shannon entropy is computed daily as H = −Σ pi·log2(pi), where pi = chaini supply ÷ total supply across all tracked chains. Units are bits. Maximum possible entropy is log2(N) where N is the number of chains with any stablecoin supply. A value of 0 bits means 100% of supply is on one chain. A value equal to max means perfectly equal distribution.

Data: Chain-level supply is aggregated across all tracked stablecoins and 171 blockchains. The series measures where stablecoin units ultimately sit across settlement environments, using the chain-supply source hierarchy and reconciliation rules set out in the methodology.

Top-5 chain series uses the current top-5 chains applied backwards through history, so the lines represent the same chains across time. Chains that did not exist yet show 0% share.

Frequently Asked Questions

What is cross-chain fragmentation entropy for stablecoins?

Cross-chain fragmentation entropy measures how evenly stablecoin supply is distributed across blockchains using the Shannon entropy formula H = −Σ p_i·log₂(p_i). Higher entropy means supply is spread more evenly across many chains. Lower entropy means supply is concentrated on fewer chains. It is a single number that summarizes the decentralization of stablecoin settlement, useful for policymakers, issuers, and DeFi protocols assessing systemic concentration risk.

Which chain holds the most stablecoin supply?

Ethereum holds 48.0% of total stablecoin supply as of the latest data — the largest single-chain share, which keeps entropy at a relatively low level.

What does rising entropy mean for the stablecoin market?

Rising entropy means stablecoin supply is spreading across more chains, settlement is becoming more decentralized. This reflects growth of L2 networks, new chain ecosystems, or issuers deploying natively on more chains. Falling entropy means consolidation, supply concentrating on fewer chains, which may indicate market-structure efficiency or reduced multi-chain activity.

What is the maximum possible entropy?

Maximum entropy is log₂(N) bits where N is the number of chains with any stablecoin supply. With 171 chains tracked, the theoretical maximum is 7.42 bits (perfectly equal distribution across all chains). The current value of 2.30 bits represents 31% of maximum entropy.

How is chain-level supply measured?

Chain-level stablecoin supply aggregates reported supply across all tracked chains, currently 171 networks with any stablecoin supply. Data is updated daily. See the methodology for data sources and coverage.

Related Indicators

Market Structure

Market Concentration (HHI)

Issuer concentration and chain concentration Issuer concentration measures a different risk from chain concentration, but the two can reinforce one another. A dominant issuer concentrated on a dominant chain creates exposure to both the issuer and its settlement environment.

Market Structure

Monetary Aggregates

Where bridged supply sits in the claim hierarchy Bridged assets are representations of base stablecoin units held or locked in another settlement environment. The aggregates place that supply within the broader hierarchy of claims.

Market Structure

Market Share & Dominance

Market share by stablecoin Each coin’s share of total supply provides the second dimension of the distribution: how market dominance is divided among individual stablecoins.

Market Structure

Total Market Cap

The scale behind the distribution Total supply is the quantity being divided across chains. Entropy measures how widely that supply is dispersed, not how large the market itself is.

Coin Behavior

Peg Stability Score

Why chain concentration matters Chain concentration becomes most consequential during periods of network stress, when activity on the dominant chain is impaired and redemptions or liquidity cannot easily migrate elsewhere.

Research

Methodology

Methodology and coverage Definitions of the universe, the hierarchy of chain-supply sources and the coverage and reconciliation checks behind the cross-chain series.

Cite as: Stablecoin Beat Research, “Stablecoin cross-chain fragmentation entropy,” stablecoinbeat.com/charts/cross-chain/, retrieved September 12, 2026.