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 (USDT), USD Coin (USDC) and Ethena’s stablecoin, USDe.
As of Dec. 20, the Ethereum blockchain held $13.5 billion worth of stablecoins, according to data from Tie Terminal, a crypto data platform for institutions and Cointelegraph Markets Pro. The overall stablecoin circulation crossed $205 billion, showing the ecosystem’s growing relevance in real-world use cases.
Total stablecoin supply change by blockchain. Source: The TIE Terminal
In a Dec. 15 post 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.
Importance of stablecoins in crypto use cases
“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.
Source: Matthias Seidl
According to DefiLlama, the top of the list is Arbitrum One, with $6.75 billion, followed by Base with $3.56 billion.
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 data shows that the total stablecoin market cap has hit its highest point, $202 billion; this excludes algorithmic stablecoins, whose value is maintained through algorithmic mechanisms rather than being pegged to external assets like fiat or gold.
Stablecoin market cap to maintain growth trajectory
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.
Stablecoin market capitalization crossed $200 billion on Dec. 11. Source: The TIE Terminal
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 (USDT). Soon after…
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