Ethereum stablecoin supply hits $166B, new DeFi high
On-chain data shows $166B of stablecoins circulating on Ethereum, a record level supporting rising DeFi activity across DEXs, lending, and payments.
The increase stems from growing issuance of major tokens on the network and their use as liquidity and settlement assets across decentralized exchanges and lending platforms. USDT and USDC make up the bulk of the supply on Ethereum, with additional contributions from other dollar-pegged tokens.
Ethereum accounts for the largest share of global supply because most leading tokens are issued as ERC-20 tokens. Traders and DeFi platforms frequently use dollar-pegged tokens on Ethereum to settle trades, provide liquidity to automated market makers, and collateralize loans.
On-chain metrics show the new high was reached over recent weeks as spot and derivatives markets saw heightened activity. Several crypto funds and institutional players increased their exposure to dollar-pegged tokens for operational liquidity during the same period.
The concentration of these tokens on Ethereum correlates with renewed usage of decentralized exchanges and lending protocols that require on-chain stable collateral. Daily transaction volumes for USDT and USDC on Ethereum have increased 23% over the past month.
Ethereum accounts for the largest share of global supply because most leading tokens are issued as ERC-20 tokens. Traders and DeFi platforms frequently use dollar-pegged tokens on Ethereum to settle trades, provide liquidity to automated market makers, and collateralize loans.
On-chain metrics show the new high was reached over recent weeks as spot and derivatives markets saw heightened activity. Several crypto funds and institutional players increased their exposure to dollar-pegged tokens for operational liquidity during the same period.
The concentration of these tokens on Ethereum correlates with renewed usage of decentralized exchanges and lending protocols that require on-chain stable collateral. Daily transaction volumes for USDT and USDC on Ethereum have increased 23% over the past month.
Tether's USDT represents approximately $82 billion of the total supply on Ethereum, while Circle's USDC accounts for roughly $34 billion. Other tokens, including DAI, FRAX, and LUSD, comprise the remaining $50 billion in aggregate supply.
The growth reflects both higher demand for dollar-denominated liquidity in DeFi and increased token issuance by providers expanding on-chain minting. Several major issuers have increased their Ethereum-based token creation in recent months.
Market observers note that while the growth underlines Ethereum's settlement role, it also increases the network's exposure to regulatory scrutiny of issuers and the infrastructure that routes large dollar flows.
Issuance and movement of large balances across wallets and protocols have become important data points for investors and regulators. The concentration of dollar-pegged tokens on a single network creates potential systemic considerations for both market participants and policymakers.
The $166 billion figure represents nearly 70% of the total global supply across all blockchain networks. Other networks, including Tron, BNB Chain, and Solana, host the remaining 30% of circulating tokens.
Recent regulatory developments in the United States and Europe have focused attention on reserve backing and redemption mechanisms for major issuers operating on Ethereum.
The growth reflects both higher demand for dollar-denominated liquidity in DeFi and increased token issuance by providers expanding on-chain minting. Several major issuers have increased their Ethereum-based token creation in recent months.
Market observers note that while the growth underlines Ethereum's settlement role, it also increases the network's exposure to regulatory scrutiny of issuers and the infrastructure that routes large dollar flows.
Issuance and movement of large balances across wallets and protocols have become important data points for investors and regulators. The concentration of dollar-pegged tokens on a single network creates potential systemic considerations for both market participants and policymakers.
The $166 billion figure represents nearly 70% of the total global supply across all blockchain networks. Other networks, including Tron, BNB Chain, and Solana, host the remaining 30% of circulating tokens.
Recent regulatory developments in the United States and Europe have focused attention on reserve backing and redemption mechanisms for major issuers operating on Ethereum.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
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