YEREVAN (CoinChapter.com) — Ethereum layer-2 networks now secure $13.5 billion worth of stablecoins, according to data from Tie Terminal on December 20. This figure reflects rising demand for stablecoins as a fundamental part of the cryptocurrency ecosystem.
Stablecoin Supply by Chain. Source: Tie TerminalDominating the stablecoin supply are Tether (USDT), USD Coin (USDC), and USDe, issued by Ethena. These tokens collectively underline the significant role of stablecoins across blockchain platforms.
Arbitrum One and Base Top Ethereum Layer-2 Networks
Data from DefiLlama shows Arbitrum One as the leading Ethereum layer-2 network for stablecoin holdings, with $6.75 billion. Base, another prominent layer-2 network, follows with $3.56 billion. Together, these platforms account for a substantial portion of the Ethereum layer-2 stablecoin supply.
On Dec. 15, Matthias Seidl, co-founder of growthepie.xyz, noted the importance of this growth in a post, stating,
“One of crypto’s killer use-cases in this cycle are stablecoins. Layer 2s just reached a new ATH in stables locked on them.”
Stablecoin Market Cap by Layer 2s. Source: growthepie.xyz/ xStablecoin Market Capitalization Crosses $200 Billion
The stablecoin market capitalization surpassed $200 billion on December 11, reflecting consistent growth in the sector. Excluding algorithmic stablecoins, the market cap hit $202 billion, according to DefiLlama.
Previously, the market reached an all-time high of $167 billion in March 2022 before declining to $135 billion by the year’s end. Since November 2023, the stablecoin market has steadily increased, with its value rising from $123 billion to its current levels.
Stablecoin Circulation Reaches $204.8B․ Source: Tie TerminalTether (USDT) and USD Coin (USDC) Maintain Dominance
Tether (USDT) remains the largest stablecoin by market capitalization, growing from $91.7 billion at the beginning of 2024 to $140 billion as of Dec. 19. This consistent growth highlights Tether’s position as the market leader.
USD Coin (USDC) also experienced growth in 2024, closing the year with a market capitalization of $42 billion. However, this remains below its June 2022 peak of $55.8 billion.
Role of MiCA Regulations in Stablecoin Expansion
The introduction of MiCA regulations in the European Union could further impact the growth of the stablecoin sector. According to reports, these regulations may encourage adoption, particularly in the European financial landscape.
Stablecoins continue to serve as critical tools for payments, remittances, and decentralized finance (DeFi) applications, supporting their sustained integration into global financial systems.
