In a notable shift within the cryptocurrency landscape, Arbitrum has recorded the largest outflows among Layer 2 networks as liquidity returns to Ethereum's mainnet. This trend highlights a growing preference among market participants for consolidating liquidity, as the publication provides the following information:
Decline in Layer 2 Stablecoin Supply
As of December 2025, Layer 2 chains are now holding only 8% of the total stablecoin supply, marking a significant decline from previous highs. This reduction indicates a strategic move by investors who are increasingly prioritizing liquidity concentration on the main Ethereum network.
Market Dynamics and Investor Behavior
The outflows from Arbitrum reflect broader market dynamics, where participants are reassessing their positions in response to changing economic conditions. The shift underscores the volatility and rapid evolution of the crypto market as traders seek to optimize their holdings in a landscape characterized by fluctuating demand for Layer 2 solutions.
In light of the recent outflows from Arbitrum as liquidity shifts back to Ethereum's mainnet, it's essential to consider the insights shared by Dave Hendricks, CEO of Vertalo, regarding stablecoins and tokenization. For more details, see stablecoins.








