Ethereum stablecoin market cap surpasses $130 billion

Ethereum returns to the blockchain race

Ethereum, the world's second-largest Layer-1 blockchain platform, is known for its ability to support smart contracts and decentralized applications. It is also at the heart of the decentralized finance ecosystem. Stablecoins, a type of cryptocurrency pegged to assets like the USD, play an important role in this ecosystem as they provide liquidity and stability for transactions.

According to data provided by DefiLlama from the market capitalization chart, the total capitalization of stablecoins on Ethereum has surpassed $130 billion. This is a major milestone in the development of this blockchain. Despite small changes in peg ratios, popular stablecoins such as Tether (USDT), USD Coin (USDC), and Dai (DAI) are leading the trend.

Innovation Milestone on Ethereum

The continuous development of the decentralized finance ecosystem and the widespread adoption of stablecoins in decentralized finance transactions have led to the stablecoin capitalization event of $130 billion on Ethereum. Since 2020, the market capitalization has increased sharply, peaking in 2021 when the free cryptocurrency boomed, reaching about $120 billion. However, in 2022, due to the downturn in the cryptocurrency market, the market capitalization had to adjust.

The gradual recovery of the capitalization from 2023 to 2025 has exceeded the $130 billion threshold, demonstrating the participation of large institutions and the recovery of cryptocurrencies. For specific developments, Tether (USDT) ranked first with $66.77 billion, while USDC ranked second with $39.73 billion. Other stablecoins, such as Dai ($3.67 billion) and Ethea USDe ($6.25 billion), also contributed significantly.

Most stablecoins have kept their pegs stable over the past 24 hours, although some, such as USDC and Dai, have seen slight changes (between 0.01% and 0.01%). Many stablecoins, such as USDT, are up 5.56% and USDC is up 2.74% over the past 7 days, indicating increased demand. This comes as Ethereum continues to consolidate its position thanks to upgrades like Layer-2 and the entry of companies like The Ether Machine with plans to accumulate ETH.

Direct Impact on the Ethereum Ecosystem

The stablecoin market cap surpassing $130 billion solidifies Ethereum’s role as a global DeFi hub. The surge reflects confidence in Ethereum’s liquidity and efficiency, especially as protocols like Uniswap and Aave rely on stablecoins to operate. This could also boost ETH prices in the short term, as demand for staking and transactions on the network increases. For stablecoins, this event strengthens the position of USDT and USDC, however, smaller stablecoins like First Digital USD (down 5.45% in 1 day) could face competitive pressure.

However, this event is not without risks. First, the dependence on stablecoins puts Ethereum at risk if legal issues or loss of peg occur, as happened with TerraUSD (UST) in 2022.

With its large capitalization, Ethereum could become a target for cyberattacks, especially since stablecoins like USDT have faced questions about their reserves. Market volatility, such as selling pressure from large institutions, could cause a rapid decline in capitalization, affecting confidence.

Conclusion and evaluation

Ethereum reaching a stablecoin market cap of $130 billion is a major milestone, affirming the blockchain’s position in DeFi and decentralized finance. This growth not only reflects the growing demand for stablecoins but also opens up opportunities for developers and investors on Ethereum. However, with risks related to regulation, security, and competition, Ethereum needs to continue to upgrade to maintain its position. This event promises a lot of potential, but also requires caution to overcome the challenges ahead.

Disclaimer: The information presented in this article is the author's personal opinion on the cryptocurrency field. It is not intended to be financial or investment advice. Any investment decision should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in the article do not represent the official position of the platform. We recommend that readers conduct their own research and consult with a professional before making any investment decisions.

Compiled and analyzed by HCCVenture

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