Stablecoins on Ethereum’s layer-2 networks have reached an all-time high, marking a significant milestone for the cryptocurrency space. The combined value of stablecoins across all blockchains has exceeded $205 billion, with Ethereum alone hosting $13.5 billion worth of stablecoins. This surge highlights the increasing relevance of digital assets in real-world use cases.
Tether (USDT), USD Coin (USDC), and Ethena’s USDe continue to dominate the stablecoin supply, with Tether leading the charge. Ethereum’s layer-2 networks, designed to improve scalability, are seeing substantial growth in stablecoin deposits, as highlighted by Matthias Seidl, co-founder of growthepie.xyz. Seidl noted that the value of stablecoins on these networks had approached $12 billion, underscoring the growing demand for faster and cheaper transaction options.
One of cryptos killer use-cases in this cycle are Stablecoins. Layer 2s just reached a new ATH in stables locked on them.
— matze | growthepie.xyz 🥧📏 (@web3_data) December 16, 2024
Almost $12B is now used on all Layer 2s combined.
For perspective:
– BSC has $6.6B
– Solana has $4.7B
– Avalanche has $2.3B pic.twitter.com/7CcYHGTNAD
Among the Ethereum layer-2 networks, Arbitrum One leads with $6.75 billion in stablecoins, followed by Base at $3.56 billion, according to data from DefiLlama. These networks have become essential for decentralized finance (DeFi) applications, as they offer users a more efficient way to interact with blockchain technology without incurring high gas fees.
The rise of stablecoins on Ethereum layer-2s comes at a time when the overall stablecoin market capitalization is on an upward trajectory. The market surpassed $200 billion on December 11, continuing its growth from the $123 billion mark in November 2023. Notably, stablecoin assets under management (AUM) have grown steadily, with Tether’s market cap surpassing $140 billion by mid-December.
Stablecoins have emerged as a critical component of the cryptocurrency ecosystem, with significant implications for global payments and remittances. Their role in the expanding crypto economy is undeniable, and industry experts predict continued growth. Arthur Azizov, CEO of B2BINPAY, speculates that European regulations such as the Markets in Crypto-Assets (MiCA) could further fuel this growth. Additionally, Bitwise’s research team predicts that stablecoin AUM could double to $400 billion in 2025, bolstered by U.S. stablecoin legislation.
Also Read: Ethereum Crashes 11% as Whale Selloff Sparks $226M Liquidations – Is $2,800 Next?
As the adoption of stablecoins grows, Ethereum’s layer-2 networks are positioning themselves at the forefront of the crypto revolution, providing the infrastructure needed for the next wave of digital finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
