Ethereum stablecoin supply skyrockets to $166 billion, consolidating its position as the core settlement layer of DeFi.

As of September 13, the total supply of stablecoins on Ethereum (ETH) has surpassed a historic high, reaching 166 billion USD, an increase of over 11% compared to a month ago. USDT and USDC remain the dominant forces, and this growth is seen by the industry as a key signal of Ethereum's further consolidation of its position in the Decentralized Finance (DeFi) space.

stablecoin supply hits a record high, exceeding 17 billion USD last month

(Source: The Block)

According to the Block data dashboard, the total supply of stablecoins on Ethereum has surged from USD 149.5 billion to USD 166 billion over the past month, an increase of more than 11%. Among them, Tether (USDT) has a supply of USD 87.8 billion, ranking first; USD Coin (USDC) follows in second place with USD 48 billion.

This data shows that stablecoins have become an indispensable core asset in the settlement and liquidity provision of the Ethereum network.

Expert Interpretation: Decentralized Finance Dollarization Process Accelerates

Kronos Research Chief Information Officer Vincent Liu stated that this historical high marks Ethereum's transformation from a purely speculative asset platform to a foundational layer in the dollarization of the DeFi ecosystem. He pointed out: "Liquidity has become strong enough to not only absorb market fluctuations but also support market stability during periods of macroeconomic downturn."

Nick Ruck, head of LVRG Research, also believes that the expansion of USDT and USDC reflects the rapid influx of institutional funds and indicates the potential rise in DeFi activity, which could even drive ETH prices upward to meet the network's demand for settlement assets.

Institution adoption rate increases, stablecoins become a bridge for funds

Industry observations indicate that the rise in stablecoin supply is closely related to the increase in institutional adoption. Due to the widespread use of USDT and USDC in scenarios such as cross-border settlement, liquidity mining, and decentralized exchanges (DEX), they have become the main financial bridge for institutions entering Decentralized Finance. This trend has not only increased the trading activity on the Ethereum network but also strengthened its position as a global digital asset settlement layer.

USDT market capitalization surpasses 170 billion USD, market confidence rises

According to CoinGecko data, the total market cap of USDT surpassed 170 billion USD over the weekend, reaching 170.3 billion USD as of 2:30 AM Eastern Time on Monday. This milestone further strengthens the market's confidence in stablecoins as a store of value and medium of exchange, providing a more solid liquidity foundation for Ethereum.

Conclusion

The supply of Ethereum stablecoins has reached a new high of $166 billion, reflecting not only the maturity and expansion of the DeFi ecosystem but also highlighting the critical role of institutional funds in driving market development. With the continuous expansion of USDT and USDC, the demand for ETH as a settlement asset may further increase, bringing more growth momentum to the market. For more on-chain data and market depth analysis, please follow the Gate official platform.