Ethereum Layer 2s has a stablecoin supply of $13.5B
Stablecoins locked on Ethereum Layer-2 networks have reached a new all-time high, fueling demand for cryptocurrencies.
Stablecoin supply for all blockchains combined is dominated 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 crypto information platform for institutions and Cointelegraph Markets Pro. Total stablecoin circulation has surpassed $205 billion, demonstrating the ecosystem's growing importance in real-world use cases.
Change in the total stablecoin supply on the blockchain. Source: TIE Terminal
In a December 15 post to X, Matthias Seid, founder of blockchain analytics firm Growth Agency, highlighted the growing supply of statscoins in Ethereum's layer-2 networks as the stablecoin price on all layer 2s approaches $12. billion.
The importance of stablecoins in crypto use cases
One of the killer use cases of cryptos in this cycle is Stablecoins. Layer 2s now have a new ATH on top of them with locked cages.
Source: Mathias Saeed
According to Defilama, the top of the list is Arbitrum One at $6.75 billion, followed by Base at $3.56 billion.
In general, the statecoin market capitalization exceeded 200 billion dollars on December 11 and continues to climb to new highs in more than 12 months of growth.
DefiLlama data shows that the total stablecoin market has reached the highest point, 202 billion dollars; This algorithm excludes stablecoins, whose value is maintained by algorithmic mechanisms rather than tied to external assets such as fiat or gold.
Stablecoin market value to maintain the development journey
Before 2024, the market reached an all-time high of $167 billion in March 2022, but soon fell, falling to $135 billion before the end of that year.
Stablecoin market capitalization surpassed $200 billion on December 11. Source: TIE Terminal
According to Defilama, the stablecoin has seen steady gains since its market capitalization stood at $123 billion as of November 7, 2023.
Leading the stablecoins pack is Tether (USDT). Shortly after the new year, USDT had a market cap of $91.7 billion.
In 2024, it recorded steady monthly gains, reaching more than $140 billion in market capitalization as of December 19, according to Defillama data.
Related: MiCA-compliant stablecoins dominate the European market – Kaiko
Circle's USD Coin (USDC) is also closing the year strong, hitting a 2024 all-time high of $42 billion, but a far cry from the June 2022 all-time high of $55.8 billion.
Stablecoins, going into 2025, may continue to see some strong growth. Artur Azizov, CEO of B2BINPAY, predicted in a December 17 report that stablecoins could see explosive growth from EU markets in the Crypto-Assets (MiCA) regulation.
Crypto exchange-traded fund (ETF) issuer Bitwise's chief investment officer Matt Hogan and head of research Ryan Rasmussen estimated in a December 11 report that stablecoin assets will increase to $400 billion after the US passes the Stablecoin Act.
According to Hougan and Rasmussen, stablecoins are already feeding into the global payments and remittance market, and stablecoin assets under management (AUM) will expand as the crypto economy expands.
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