Ethereum Continues to Be the Blockchain of Choice for Stablecoin Activity

The Block’s Data and Insights newsletter revealed that Ethereum continued to be the blockchain of choice for stablecoin activity.

The stablecoin ecosystem is expected to experience significant expansion in 2024, with total supply increasing by 63% from $138 billion to $225 billion, according to Dune Analytics.

Stablecoin monthly transfer volume also rose from $1.9 trillion in February 2024 to $4.1 trillion in February 2025.

The data indicated that the volume of stablecoins has maintained impressive momentum, averaging roughly $800 billion monthly over the past four months. Active addresses transferring stablecoins also surged steadily, reaching 600,000 addresses in a week.

USDC and USDT were the most dominant stablecoins, accounting for $740 billion of February’s $850 billion total volume.

Dune highlighted that the concentration of both stablecoins reflected the market’s preference for established stablecoin options with strong track records.

On the other hand, the firm noted that the ecosystem was also witnessing the emergence of new stablecoins, such as PUSD and FXS, which secured a combined volume of $22 billion.

“Stablecoins tend to flow where the infrastructure is right–fast and cheap transactions –and where the use cases demand them. On Solana, we clearly see this with memecoins, where traders need liquidity and instant settlement, making stablecoins an essential part of the ecosystem.”

Andrew Hong, Head of Research at Ethena Labs.

The data showed that the volume of stablecoins has maintained momentum, averaging roughly $800 billion monthly over the past four months. Active addresses transferring stablecoins also surged steadily, reaching 600,000 addresses in a week.

USDC and USDT were the most dominant stablecoins, accounting for $740 billion of February’s $850 billion total volume.

According to Dune, the concentration of both stablecoins reflected the market’s preference for established stablecoin options with strong track records. On the other hand, the ecosystem was also witnessing the emergence of new stablecoins, such as PUSD and FXS, which secured a combined volume of $22 billion.

The Block’s Data and Insights newsletter revealed that Ethereum continued to be the preferred blockchain for stablecoin activity. The data indicated that Ethereum hosted $35 billion in USDC and $67 billion in USDT.

The firm argued that ETH’s dominance highlighted its role as the primary settlement layer for stablecoins transactions despite the proliferation of alternative blockchains.

The stablecoin space is also gaining regulatory clarity as the U.S revealed it will advance a stablecoin bill aimed at establishing clear frameworks and standards for issuers. The analytic firm noted that the bill could further legitimize major U.S.-based stablecoin providers, including Circle (USDC) and PayPal (PYUSD).