Ethereum Stablecoin Volume Soars to Record $908 Billion Amid Institutional Surge

May 16, 2025

2 min read

Key Takeaways

Ethereum’s $908 billion stablecoin volume in April 2025, driven by USDC, DAI, and USD1, highlights its critical role in digital finance, with institutions and tech giants fueling growth.
While Ethereum dominates, competition from Tron and Solana, alongside pending U.S. stablecoin legislation, could reshape the market and challenge profitability.

Ethereum’s stablecoin transaction volume hit an all-time high of $908 billion in April 2025, driven by institutional adoption, tech giants like Meta and Stripe, and Donald Trump’s World Liberty Financial stablecoin, USD1. This milestone underscores Ethereum’s dominance in digital finance despite growing competition.

Ethereum’s Stablecoin Surge Hits Historic Peak

The biggest Layer 1 on-chain stablecoin volume reached a historic $908 billion in April 2025, marking a new all-time high, according to The Block. This surge, up from $850 billion in May 2024, reflects Ethereum’s role as the leading blockchain for dollar-pegged digital assets. USDC, issued by Circle, led with over $500 billion in transactions over the past six months, while DAI and Sky’s USDS also saw significant activity, signaling a diversifying stablecoin market.

Source: The Block

The surge coincides with major developments. Meta announced plans to integrate stablecoins for cost-effective transactions, and Stripe launched stablecoin-based payment solutions after acquiring Bridge for $1.1 billion.

Meanwhile, President Donald Trump’s World Liberty Financial project minted $2 billion in its USD1 stablecoin, which now ranks as the seventh-largest by market cap. A CoinDesk report on May 16, 2025, suggests USD1’s rapid growth, has drawn institutional attention. Ethereum’s stablecoin market cap, holding 51% of the $230 billion total, per The Block, reinforces its dominance over rivals like Tron.

Institutional Adoption and Competitive Challenges

The $908 billion milestone reflects growing trust in stablecoins for cross-border payments and DeFi. Tether (USDT) holds a 52% market share, followed by USDC, but Ethereum’s infrastructure supports a broader ecosystem, including Ethena’s USDe and Ripple’s planned stablecoin.

However, competition is intensifying. Solana and Layer 2 solutions are gaining traction, with Tron hosting $60.7 billion in stablecoin supply, per Unchained. Despite these challenges, Ethereum’s robust infrastructure and institutional backing ensure its lead in stablecoin transactions.

Learn more: 15+ Best Crypto Signals Telegram Groups in 2025

Zander Brown

Zander Brown is a freelance journalist with a keen interest in the dynamic world of altcoins. He closely follows the development and evolution of cryptocurrencies beyond Bitcoin, analyzing market trends and investigating the potential impact of these emerging projects on the broader crypto ecosystem.

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