Stablecoins supply on Ethereum surges to all-time high over $132.4 billion

Source Cryptopolitan

On-chain data indicated a surge in Ethereum’s stablecoin supply to a new all-time high of $132.4 billion, with USDT and USDC accounting for a huge percentage of the total supply on the blockchain.

As of March 24, the USDT supply on Ethereum hit over $75 billion, while the USDC supply stood at a little over $39 billion. USDe, USDS, DAI, FDUSD, and PYUSD accounted for $5.39 billion, $4.49 billion, $2.95 billion, $2.07 billion, and $714.23 million of the total Ethereum stablecoin supply, respectively. 

The current Ethereum stablecoin supply accounts for over half of the total stablecoin market cap, which has surged to about $230 billion as of March 2025. The interest in stablecoins also increased despite the downward trend seen in the crypto markets this year. Bitcoin and other cryptocurrencies have been experiencing liquidations, dumps, and price plunges over the past few months due to continued macroeconomic uncertainty, including President Trump’s economic policies. 

The crypto market trends over the past few months saw a retracted interest from speculative and risk assets to less volatile assets. The negative sentiment led to Bitcoin’s price dropping below $77,000 severally in the past few weeks. Most altcoins have also failed to maintain the momentum seen at the end of last year and in January this year, leading to speculation that the altseason would not happen in the 2024/2025 bullish cycle.

Stablecoin production remained consistent, especially during the recent ETH price plunge to around the $1,900 level. 

Stablecoin dominance remains visible across other metrics 

The overall stablecoin supply growth year-on-year as of March this year stood at about $80 billion, marking approximately 59% growth. The supply grew on Ethereum the most from $75.3 billion in March last year to over $132 billion this March. Other blockchains also saw significant surges in stablecoin supply, including Solana, BNB Chain, Tron, Base, Arbitrum, and more. 

The coins have also managed to increase their supply by over 10% since January this year, amounting to over $20 billion in supply surge. An increase in stablecoin supply has been associated with an increase in crypto market liquidity. One contributing event to the upward momentum seen in stablecoin supply is the recent $1 billion USDT by Tether a few days ago. 

Ethereum has shown superiority in stablecoin dominance through the spiked monthly transfer volumes and active stablecoin addresses. Ethereum stablecoin monthly transfers saw over a $2 trillion year-on-year change as of February 2025, with February 2024 monthly transfers at $1.9 trillion and February 2025 monthly transfers at $4.1 trillion. 

A recent CoinMarketCap report stated the significance of Ethereum’s ecosystem as stablecoin usage grew. The report indicated that Ethereum’s ecosystem was necessary as a settlement layer for stablecoin transactions. 

Ethena Labs’ head of research, Andrew Hong, also recently mentioned that stablecoin flows are usually directed to chains with robust infrastructure and where stablecoin use cases are required. Hong added that the Ethereum stablecoin ecosystem continued to demonstrate notable resilience. 

Institutional adoption increases stablecoin growth

A recent Dune Analytics and Artemis report dubbed “The State of Stablecoins 2025: Supply, Adoption & Market Trends” cited growing institutional interest, and DeFi stablecoin adoption contributed to the growth in the stablecoin market. The report highlighted the growth through the 53% spike in active stablecoin user addresses, changing from 19.6 million in February last year to 30 million in February this year. Dune and Artemis revealed that institutions and DeFi applications were leveraging stablecoins more for payments while increasing their accessibility across multiple platforms. 

The Federal Reserve has also been considering the importance of stablecoins in bridging digital and traditional finance. The Fed Governor Christopher Waller mentioned last month that the integration of stablecoins in the economy could help boost the U.S. dollar’s dominance in global markets. Waller also compared stablecoins to commercial bank money while insisting on the digital assets’ ability to open new payment gateways.

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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