Ethereum Stablecoin Adoption Reaches New High with 750K Users

Ethereum-based stablecoins have reached a record in user activity, with more than 750,000 unique weekly users as of June 2025, driven mainly by USDT and USDC.

This surge signifies a renewed preference for Ethereum Layer-1 over Layer-2 solutions, influenced by reduced fees and increased transactional efficiency. It reflects higher market confidence in stablecoins.

USDT and USDC Propel Stablecoin Usage Boom

Ethereum’s stablecoin ecosystem is experiencing a substantial increase in user activity. This growth is primarily due to USDT and USDC, major players who have been pivotal in DeFi’s adoption. Their market presence fuels this record-breaking milestone.

Major companies like Tether and Circle lead this surge. They play a central role by providing the infrastructure needed for transactions. New entrants, such as PayPal’s PYUSD, are also beginning to make a significant impact on the ecosystem.

Ethereum’s Fee Revenue Soars with Stablecoin Surge

The Ethereum network enjoys elevated on-chain activity and increased transaction fee revenue. This trend is seen as a positive shift, driving both retail and institutional adoption while bolstering Ethereum’s centrality in DeFi.

Experts predict financial gains due to the growing stablecoin usage, enhancing Ethereum’s competitive market standing. Analysts note that Layer-1’s resurgence could reshape liquidity allocation, reclaiming its dominance from Layer-2 scalability solutions. Solving cross-layer liquidity fragmentation is critical for Ethereum to maintain its competitive edge in the evolving DeFi landscape.

Layer-1 Gains Ground Over Layer-2 Solutions

Past surges, like those in 2021 and 2022, boosted fees and showed regulatory impact but shifted to Layer-2s as gas costs surged. The current focus returns to Layer-1, emphasizing a shift in market sentiment.

Illia Otychenko of CEX.io highlights the significance of solving liquidity fragmentation across layers. This approach is vital for Ethereum, suggesting a stronger position in the rapidly evolving DeFi landscape.