Ethereum Stablecoin Supply Climbed $17 Billion in August
In August, the stablecoin supply of Ethereum jumped by 13%, adding more than $17 billion in value — more than all other blockchains combined, according to data from Artemis. Tron, Ethereum’s closest competitor, lost 1.3% of its supply during the same period after Binance redirected part of its reserves to Ethereum, shifting liquidity on-chain.
The overall stablecoin market has now grown to a record $287 billion, and many analysts believe there is more room ahead. Coinbase expects stablecoin supply to surpass $1 trillion by 2028, while Keyrock and Bitso share the same prediction but expect the milestone closer to 2030, at which point stablecoins could account for 12% of all global cross-border payments.
Ethereum stablecoin leaders
Artemis data shows that Circle’s USDC, Tether’s USDT, and Ethena’s USDe are the main drivers behind Ethereum’s growth. While Tether and Circle are the largest issuers, USDT’s market share is almost double USDC’s. Still, USDC was the standout performer in August, adding $9.4 billion and boosting its dominance in decentralized finance to 58% from 55%.
USDT benefited from Binance’s Plasma Earn campaign, which drew in more than $1 billion in deposits. Ethena’s USDe also gained traction thanks to looping DeFi strategies, where traders stack positions across platforms like Pendle and Aave to maximize returns.
Outside Ethereum, Solana was the only blockchain to see its stablecoin supply grow by more than $1 billion.
Rising competition in stablecoins
Ethereum remains the leading blockchain for stablecoin activity, but competition could intensify. In August, Circle and payments giant Stripe revealed plans to build their own stablecoin-focused blockchains.
Some experts argue these are attempts by issuers to capture transaction fees from the expanding stablecoin market. However, others remain skeptical. Christian Catalini, co-creator of Meta’s Libra stablecoin project, said that such private blockchains are “doomed to fail.”
Sources:
https://www.dlnews.com/articles/markets/stablecoin-market-1tn-coinbase-maps-20000-ways-to-get-there/