The number of stablecoins pegged to the Ethereum layer 2 network has hit an all-time high, showing growing demand for cryptocurrencies.
Stablecoin supply on all blockchains is led by Tether (USDT), USD Coin (USDC), and Ethena’s stablecoin USDe.
As of December 20, the Ethereum blockchain held $13.5 billion worth of stablecoins, according to data from Tie Terminal, a cryptocurrency data platform for institutions, and Cointelegraph Markets Pro. Total stablecoin circulation has surpassed $205 billion, demonstrating the ecosystem’s growing relevance in real-world use cases.
Changes in total stablecoin supply due to blockchain. Source: TIE Terminal
In a December 15 post on It highlighted that table coin supply is increasing. 1 billion.
The Importance of Stablecoins in Cryptocurrency Use Cases
“One of the cryptocurrency killer use cases in this cycle is Stablecoins. Layer 2 has reached a new ATH in a fixed stable,” he said.
source: Matthias Seidl
According to DefiLlama, Arbitrum One ranked first with $6.75 billion, followed by Base with $3.56 billion.
Overall, the total stablecoin market cap surpassed $200 billion on December 11 and continues to hit all-time highs following more than 12 months of growth.
According to DefiLlama data, the overall stablecoin market cap hit a record high of $202 billion. This excludes algorithmic stablecoins, whose value is maintained through algorithmic mechanisms rather than being pegged to an external asset such as fiat or gold.
Stablecoin market cap maintains growth trajectory
Prior to 2024, the market reached an all-time high of $167 billion in March 2022, but soon plummeted, falling to $135 billion before the end of that year.
The stablecoin market capitalization exceeded $200 billion on December 11. Source: TIE Terminal
According to DefiLlama, the stablecoin market capitalization has been steadily rising since hitting $123 billion on November 7, 2023.
At the forefront of stablecoins is Tether (USDT). Just after the new year, USDT’s market capitalization reached $91.7 billion.
It has posted consistent monthly gains throughout 2024, pushing its market capitalization above $140 billion as of December 19, according to DefiLlama data.
relevant: MiCA-compatible stablecoins dominate European markets — Kaiko
Circle’s USD Coin (USDC) is also ending the year strong, reaching a 2024 high of $42 billion, but still far from its all-time high of $55.8 billion in June 2022.
Stablecoins could continue to see solid growth in 2025. Arthur Azizov, CEO of B2BINPAY, speculated in a December 17 report that stablecoins could see explosive growth due to the European Union’s Market for Cryptocurrency Assets (MiCA) regulations.
Stablecoin assets will double to $400 billion in the next year after the U.S. passes stablecoin legislation, Matt Hougan, head of investments, and Ryan Rasmussen, head of research at cryptocurrency ETF issuer Bitwise, wrote in a December 11 report. I assumed this would be the case.
According to Hougan and Rasmussen, stablecoins are already encroaching on the global payments and remittance markets, and as the cryptocurrency economy expands, stablecoin assets under management (AUM) tend to grow as well.
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