Ethereum Dominates Stablecoin Liquidity

Stablecoins on Ethereum have achieved a strong dominance position in the cryptocurrency market, with a record trading volume of $1.46 trillion in the first 9 months of 2024, more than doubling since the beginning of the year. Ethereum currently holds a stablecoin supply of up to $85 billion, reinforcing its role in the decentralized finance (DeFi) ecosystem.

This dominance not only reflects the increasing demand for stablecoins but also shows that USDT and USDC remain the primary stablecoin assets, despite the emergence of new competitors like PYUSD from PayPal. According to data from DefiLama, the market capitalization of stablecoins on Ethereum has reached $84.869 billion, with USDT holding the largest market share.

These successes not only improve liquidity and reduce slippage in the market but also attract major financial institutions to engage in crypto, creating a bridge between traditional finance and the cryptocurrency market.