Stablecoins on Ethereum reach US$166 billion and consolidate DeFi

• Ethereum Stablecoin Supply Reaches All-Time High
• USDT leads with $87,8 billion in circulation
• Ethereum strengthens its role as the core infrastructure of DeFi

The total supply of stablecoins on the Ethereum network reached a historic milestone of $166 billion last Saturday, surpassing the $149 billion recorded the previous month. This increase reinforces blockchain's role as the primary infrastructure for settlements and operations in the decentralized finance (DeFi) ecosystem.

Among issuers, Tether (USDT) remains the leader with $87,8 billion allocated to the network, while USD Coin (USDC) ranks second with approximately $48 billion. This dominance of dollarized stablecoins highlights Ethereum's growing relevance as an essential liquidity layer in the sector.

Vincent Liu, CIO of Kronos Research, highlighted the impact of this expansion.

“Ethereum's stablecoin supply reaching an all-time high marks a watershed moment, transforming it from a speculative asset to a backbone of dollarization in DeFi ecosystems.”

He stated. He further added that current liquidity demonstrates sufficient strength to absorb macroeconomic shocks and sustain market activity.

Nick Ruck, director of LVRG Research, reinforced Liu's view by pointing out that the record achieved:

“means a massive increase in institutional liquidity and deeper trust in its infrastructure as a foundational layer for DeFi.”

According to Ruck, the supply expansion was driven primarily by the growth of USDT and USDC, reflecting the accelerated inflow of institutional capital. This movement, he believes, could generate greater activity in decentralized protocols and even boost the appreciation of Ether (ETH), Ethereum's native asset, given the growing demand for liquidity.

In addition to the record high on the Ethereum network, USDT's market cap also showed strength. Over the weekend, the stablecoin's market cap surpassed the $170 billion mark, reaching $170,3 billion early Monday morning (Eastern Time).

The growth in the supply of stablecoins confirms Ethereum's role as the foundation of DeFi transactions, where stable and scalable liquidity is seen as a pillar to support the growth of new blockchain-based financial applications and interactions.