Ethereum stablecoin market surges with USDC and USDT generating $850 billion in revenue

The Block’s Data and Insights newsletter revealed that Ethereum continued to be the blockchain of choice for stablecoin activity. On-chain data also showed that Ethereum hosted $35 billion in USDC stablecoins and $67 billion in USDT.

Dune Analytics acknowledges that the stablecoin ecosystem will experience significant expansion in 2024, with total supply increasing by 63% from $138 billion to $225 billion. Stablecoin monthly transfer volume also rose from $1.9 trillion in February 2024 to $4.1 trillion in February 2025.

Ethereum grows its stablecoin dominance

On-chain data showed that Ethereum’s stablecoin ecosystem continued to demonstrate remarkable resilience and utility. 

“Stablecoins tend to flow where the infrastructure is right–fast and cheap transactions –and where the use cases demand them. On Solana, we clearly see this with memecoins, where traders need liquidity and instant settlement, making stablecoins an essential part of the ecosystem.”

~ Andrew Hong, Head of Research at Ethena Labs.

The data indicated that the volume of stablecoins has maintained impressive momentum, averaging roughly $800 billion monthly over the past four months. Active addresses transferring stablecoins also surged steadily, reaching 600,000 addresses in a week.

USDC and USDT were the most dominant stablecoins, accounting for $740 billion of February’s $850 billion total volume. Dune  Analytics also highlighted that the concentration of both stablecoins reflected the market’s preference for established stablecoin options with strong track records.

The Block’s Data and Insights newsletter revealed that Ethereum continued to be the preferred blockchain for stablecoin activity. The data indicated that Ethereum hosted $35 billion in USDC and $67 billion in USDT. The firm argued that ETH’s dominance highlighted its role as the primary settlement layer for stablecoins transactions despite the proliferation of alternative blockchains.

The stablecoin space is also gaining regulatory clarity as the U.S. revealed it will advance a stablecoin bill aimed at establishing clear frameworks and standards for issuers. The analytic firm noted that the bill could further legitimize major U.S.-based stablecoin providers, including Circle (USDC) and PayPal (PYUSD).

Ethereum dominates the stablecoin market in P2P transactions 

Ethereum’s stablecoin dominance grows as USDC and USDT drive $850 billion in volume by https://t.co/sJIbKsp70F . As speculative assets face significant headwinds, Ethereum's stablecoin ecosystem continues to demonstrate resilience and utility. pic.twitter.com/olGzMwD9am

— ROW (@MOTIONMANFRLFEL) March 19, 2025

On-chain data revealed that 91% of the total supply of stablecoins remained fiat-backed by cash reserves or short-term government securities. 8.5% of stablecoins are also backed by over collateralized crypto assets, such as Ethereum and staked assets. 

A report by Dune and Artemis noted that the overall distribution of stablecoin liquidity across blockchains had remained relatively stable, with Ethereum and TRON dominating in the space. The analytic firm revealed that Ethereum’s market share increased slightly from 54% to 55% YoY, while TRON saw a notable decline from 35% to 28%. 

The report also noted that Solana was the biggest beneficiary, surging from 1.6% to 5.4%. Base also increased significantly from 0.2% to 1.8%.

On-chain data also showed that stablecoin transfer volume shifted across blockchains, with Base, Ethereum, Tron, and Solana leading the way. Solana held 50-60% of the market last year before declining from July onwards. The digital asset reclaimed its top position in December 2024 and January 2025 before plummeting again. Base surged from $3.7 billion (0.2% share) in February 2024 to $1.9 trillion (43%) in February 2025, making it the number one blockchain for stablecoin transfers.

The analytic platform also noted that the landscape shifted when looking specifically at P2P transfers, with TRON dominating over 50% of the market, followed by Ethereum. Dune Analytics concluded that Base and Solana led in speculative and trading-driven stablecoin flow, while TRON and Ethereum remained the go-to network for remittances and informal P2P transactions.

The report showed that stablecoin activity on Ethereum indicated a balance between centralized exchanges, DeFi, and lending protocols. The firm noted that Binance dominated supply and transfer volume, indicating that its users not only hold but also move stablecoins actively within the Ethereum network.

Coinbase also ranked second in the transfer volume of stablecoins within the Ethereum network. The data showed that centralized exchanges OKX ranked second for supply, although with a lower amount than Binance. Aave also ranked high in both supply and transfer volume, and the analytic platform argued that it reinforced Ethereum’s position as a key hub for stablecoin-backed decentralized borrowing and lending.

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