Ethereum

Stablecoin

when

Arthur

Base

Stablecoins locked onto Ethereum layer-2 networks have reached a new all-time high, showcasing rising demand for cryptocurrencies.
The stablecoin supply to all blockchains combined is dominated by Tether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/tether-price-index" rel="noopener noreferrer nofollow" target="null" text="null" title="null">USDT</a>), USD Coin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/usdc-price-index" rel="noopener noreferrer nofollow" target="null" text="null" title="null">USDC</a>) and Ethena’s stablecoin, USDe.
As of&nbsp; Dec. 20, the Ethereum blockchain held $13.5 billion worth of stablecoins, <a data-ct-non-breakable="null" href="https://sigdev.thetie.io/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">according</a> to data from Tie Terminal, a crypto data platform for institutions and <a data-ct-non-breakable="null" href="https://pro.cointelegraph.com/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Cointelegraph Markets Pro</a>. The overall stablecoin circulation crossed $205 billion, showing the ecosystem’s growing relevance in real-world use cases.
<figure><img alt="Circle, Tether, Stablecoin" src="https://s3.cointelegraph.com/uploads/2024-12/0193e323-ff8f-7ca8-a0c8-3d9884f0ceb4" title="">
 <figcaption style="text-align: center;">
 Total stablecoin supply change by blockchain. Source: The TIE Terminal
 </figcaption>
</figure>
In a Dec. 15 <a data-ct-non-breakable="null" href="https://x.com/web3_data/status/1868587567844663525" rel="noopener noreferrer nofollow" target="null" text="null" title="null">post</a> to X, Matthias Seidl, the co-founder of block space analytics firm growthepie.xyz, highlighted the growing supply of stablecoins in the Ethereum layer-2 networks as the value of stablecoins on all layer 2s combined neared $12 billion.
<h2 id="importance-of-stablecoins-in-crypto-use-cases">Importance of stablecoins in crypto use cases</h2>
“One of cryptos killer use-cases in this cycle are Stablecoins. Layer 2s just reached a new ATH in stables locked on them,” he said.
<figure><img alt="Circle, Tether, Stablecoin" src="https://s3.cointelegraph.com/uploads/2024-12/0193e328-4aa7-7a1c-b49e-8bc714ffdfdb" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/web3_data/status/1868587567844663525" rel="noopener noreferrer nofollow" target="null" text="null" title="https://x.com/web3_data/status/1868587567844663525">Matthias Seidl</a>
 </figcaption>
</figure>
According to DefiLlama, the top of the list is <a data-ct-non-breakable="null" href="https://defillama.com/stablecoins/Arbitrum" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Arbitrum One</a>, with $6.75 billion, followed by Base with $3.56 billion.&nbsp;
Overall, the total stablecoin market capitalization crossed $200 billion on Dec. 11 and continues to climb to new all-time highs amid more than 12 months of growth.
DefiLlama <a data-ct-non-breakable="null" href="https://defillama.com/stablecoins?backing=FIATSTABLES&amp;backing=CRYPTOSTABLES" rel="noopener noreferrer nofollow" target="null" text="null" title="null">data</a> shows that the total stablecoin market cap has hit its highest point, $202 billion; this excludes algorithmic <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/algorithmic-vs-collateralized-stablecoins" rel="noopener noreferrer nofollow" target="null" text="null" title="null">stablecoins, whose value</a> is maintained through algorithmic mechanisms rather than being pegged to external assets like fiat or gold.
<h2 id="stablecoin-market-cap-to-maintain-growth-trajectory">Stablecoin market cap to maintain growth trajectory</h2>
Before 2024, the market’s all-time high of $167 billion was reached in March 2022, but it tumbled soon after, dropping to $135 billion before the end of that year.
<figure><img alt="Circle, Tether, Stablecoin" src="https://s3.cointelegraph.com/uploads/2024-12/0193e32b-4b02-7d23-9869-0cdef96f954c" title="">
 <figcaption style="text-align: center;">
 Stablecoin market capitalization crossed $200 billion on Dec. 11. Source: The TIE Terminal
 </figcaption>
</figure>
According to DefiLlama, stablecoin market capitalization has realized steady gains since Nov. 7, 2023, when it was at $123 billion.
Leading the pack of stablecoins has been Tether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/tether-price-index" rel="noopener noreferrer nofollow" target="null" text="null" title="null">USDT</a>). Soon after the new year, USDT had a market cap of $91.7 billion.&nbsp;
Throughout 2024, it has <a data-ct-non-breakable="null" href="https://defillama.com/stablecoin/tether" rel="noopener noreferrer nofollow" target="null" text="null" title="null">registered</a> steady monthly gains, reaching over $140 billion in market capitalization as of Dec. 19, according to DefiLlama data.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/mi-ca-compliant-stablecoins-dominate-european-markets-kaiko" rel="noopener noreferrer nofollow" target="null" text="null" title="null">MiCA-compliant stablecoins dominate European market — Kaiko</a>
Circle’s USD Coin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/usdc-price-index" rel="noopener noreferrer nofollow" target="null" text="null" title="null">USDC</a>) is also closing out the year <a data-ct-non-breakable="null" href="https://defillama.com/stablecoin/usd-coin" rel="noopener noreferrer nofollow" target="null" text="null" title="null">strongly</a>, reaching its highest point for 2024 of $42 billion, but still a far cry from its all-time high of $55.8 billion in June 2022.
Stablecoins, going into 2025, could continue to see some solid growth. Arthur Azizov, CEO of B2BINPAY, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/stablecoins-will-see-explosive-growth-in-2025-as-world-embraces-asset-class" rel="noopener noreferrer nofollow" target="null" text="null" title="null">speculated in a Dec. 17 report </a>that stablecoin could see explosive growth off the back of the European Union’s Markets in Crypto-Assets (MiCA) regulation.
Crypto <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/different-types-of-etfs" rel="noopener noreferrer nofollow" target="null" text="null" title="null">exchange-traded fund</a> (ETF) issuer <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitwise-predicts-five-crypto-unicorns-will-launch-ipo-in-2025" rel="noopener noreferrer nofollow" target="null" text="null" title="null">Bitwise’s investment chief Matt Hougan and research head Ryan Rasmussen</a> speculated in a Dec. 11 <a data-ct-non-breakable="null" href="https://s3.us-east-1.amazonaws.com/static.bitwiseinvestments.com/Research/Bitwise-The-Year-Ahead-10-Crypto-Predictions-for-2025.pdf" rel="noopener noreferrer nofollow" target="null" text="null" title="null">report</a> that stablecoin assets would double to $400 billion next year after the US passes stablecoin legislation.
According to Hougan and Rasmussen, stablecoins are already eating into the global payments and remittances market, and stablecoin assets under management (AUM) tend to expand when the crypto economy expands.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/5-real-use-cases-for-useless-memecoins/" rel="noopener noreferrer nofollow" target="null" text="null" title="null">5 real use cases for useless memecoins</a>

Ethereum layer 2s hold $13.5B stablecoin supply

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Cointelegraph

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