Stablecoins on ethereum

Hello!

Ethereum just reached another crazy milestone. The stablecoin supply on Ethereum has now surpassed $160 billion, marking a new all-time high. What is even more impressive is that this number has more than doubled since January 2024. In only some months, the growth has been explosive.

See tweet from @tokenterminal:

Stablecoins are like the blood that keeps the crypto ecosystem alive. They are used for trading, liquidity, DeFi, payments, savings… basically everything. And most of this activity happens on Ethereum. Every time people mint or move stablecoins, they are using the Ethereum network. That means higher usage, more demand, and more reasons to hold ETH as gas.

If we compare to the past cycle, in 2021–2022 the stablecoin supply peaked around $120 billion before dropping when the bear market came. Now, we are not only back at that level, but we have smashed through it and created a new record. This shows confidence in Ethereum as the base layer for global money movement.

The doubling since January 2024 also tells a lot about where capital is flowing. Investors prefer to park value in stablecoins, ready to deploy into BTC, ETH or other assets when the moment is right. It is like dry powder waiting on the sidelines, and it is bigger than ever.

Many people still underestimate stablecoins. They think only about the price of ETH or BTC, but in reality, the huge adoption of stablecoins is one of the strongest signals for the health of the crypto economy. If $160 billion can exist and function daily on Ethereum, what stops it from becoming $300 billion or even more in the next years?

Ethereum continues to be the settlement layer of choice. While other blockchains try to take some market share, the numbers speak clear. Stablecoins trust Ethereum. And that means more activity, more fees, and more reasons for ETH to gain value long term.

This milestone is not just about numbers. It is about Ethereum proving, once again, that it is the backbone of decentralized finance.
I hope you have a great week!

Posted Using INLEO